3. An MBA student has been managing his family's investment portfolio for three years with success. Although the student investor had never invested in options before, he has decided to start doing so. Specifically, the student has agreed to purchase both call options simultaneously and put options with the same strike price on the same stock. This strategy means that the call option will become profitable if the store goes up, and the put option will become profitable if the stock goes down. The student's parents think their son is crazy and say this strategy is like placing two wagers on an athletic event one on the home team and one on the away team. They tell their son there is no possible way to get ahead because only one team will win. Suppose you are a student investor. Please use the following information to defend your strategy and convince your parents: December call option (strike price-$50) premium: $5/share December put option (strike price $50) premium: $3/share Make you do the analysis and draw the payoff graph (as we did in class).