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2. (20 points) A portfolio consists of a number of European puts and calls, all on the same asset and with the same expiration.

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2. (20 points) A portfolio consists of a number of European puts and calls, all on the same asset and with the same expiration. The strikes and quantities of contracts are given on the table below. Draw the payoff diagram for this portfolio, preferably on the graph paper below. You must show complete justification on this problem to receive any credit. Strike Quantity 3 3 3 6 9 12 -3 9 3 3 Put Call Call Put Put

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