4. Consider the UBS Discount Certificate on the Allianz share, with details given in the attached product information. (a) Construct a portfolio consisting of options and underlying Allianz shares which represents (i.e. has equivalent cash flows at maturity) this Discount Certifica- te. What are the exercise price, initial Call option price, and maturity of the option(s)? (b) Plot the payoff diagram and the profit diagram of the Discount Certificate. (c) On 20/03/14, the Discount Certificate and the Allianz share were traded for EUR 116.40 and EUR 121.30, respectively. How would you advise an investor (regarding opportunities and risks of the two investments) who is considering to either buy the Discount Certificate or invest in the Allianz share directly on this day?