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6. An investor buy for $3 a 3-month European put with a strike price of $35 and sells for $1 a 3-month European put with
6. An investor buy for $3 a 3-month European put with a strike price of $35 and sells for $1 a 3-month European put with a strike price of $30. a. Prepare an algebraic table showing the payoff of this position at expiration under different scenarios. b. Prepare a numerical table showing the payoff and the profit of the above position at expiration, under different scenarios. c. Use this table to draw the graphs of the position's payoff and profit at expiration. Hint: Consider these three scenarios ST 35 6. An investor buy for $3 a 3-month European put with a strike price of $35 and sells for $1 a 3-month European put with a strike price of $30. a. Prepare an algebraic table showing the payoff of this position at expiration under different scenarios. b. Prepare a numerical table showing the payoff and the profit of the above position at expiration, under different scenarios. c. Use this table to draw the graphs of the position's payoff and profit at expiration. Hint: Consider these three scenarios ST 35
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