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6. The stock of Microsoft (MSFT) is currently trading at $305. 1 month calls at a strike of 305 are currently trading at 15.00 ;

image text in transcribed 6. The stock of Microsoft (MSFT) is currently trading at $305. 1 month calls at a strike of 305 are currently trading at 15.00 ; puts at 305 are trading at 10.79 i. Draw a payoff diagram for the portfolio that includes 1 share of MSFT and 1 put option ii. Draw a payoff diagram for the portfolio that is short 1 call option and is long for 1 share of MSFT iii. Suppose that one month from now, the stock of MSFT falls to $295. What is the profit or loss from the portfolios in parts (i) and (ii)? iv. Suppose someone purchased 50 call options and the price of MSFT in one month ends up being $295. What would be the profit or loss from that strategy

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