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21. and 22. DOUBLE-WEIGHT Suppose a call option on a given stock has premium $4 per share, and the put option at the same exercise

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21. and 22. DOUBLE-WEIGHT Suppose a call option on a given stock has premium $4 per share, and the put option at the same exercise price (E-$100) has premium $3 per share. The price of a Treasury security having the same maturity as the option is.9800 (dollars per face). a. What would you expect the price of the underlying security to be? b. Illustrate with a graph the profit or payoff profile that would result from a "covered call" (write call on the security you own) on this stock. Explain

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