$3.$ Consider a put on the same underlier $($NoDiv$).$

The strike is $$53\mathrm{.}00,$ which is the forward price.

The owner of the call has the choice or option to buy at the strike.

They get to see the market price S$1$ before they decide.

We assume they are rational.

What is the payoff from a long call position? What is the payoff from a short call position?

Draw the payoff diagram for each position.