3. What is the difference between naked and covered call writing? (10 points) Calculation questions (30 points) 1. Construct the payoff diagram for the purchase of an 85-strike S&R call and sale of a 100-strike S&R call. (10 points) 2. Construct the payoff diagram for the purchase of an 85-strike S&R put and sale of a 100-strike S&R put. (10 points) 3. What is the difference in the payoff diagrams for the call and put spreads? Why is there a difference? (10 points)