4. This question asks you about options and option pricing models. Suppose there exists a stock SNL currently selling at price X Consider a portfolio that consists of . A put option bought at strike price X, and premium P, A put option written at strike price , and premium P-1, .A call option bought at strike price X, and premium C, A call option written at strike price X, and premium C-1 a)(6 points) Draw the payofls and profts for this portfolio (b) (4 points) Write the piece-wise function that defines this portfolio's profits. (c) (2 points) What is the downside risk and the upside potential of this option? 4. This question asks you about options and option pricing models. Suppose there exists a stock SNL currently selling at price X Consider a portfolio that consists of . A put option bought at strike price X, and premium P, A put option written at strike price , and premium P-1, .A call option bought at strike price X, and premium C, A call option written at strike price X, and premium C-1 a)(6 points) Draw the payofls and profts for this portfolio (b) (4 points) Write the piece-wise function that defines this portfolio's profits. (c) (2 points) What is the downside risk and the upside potential of this option