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8. You bought a call option on with an exercise price of $2 and you paid $0.08/ as premium. At the same time, you sold
8. You bought a call option on with an exercise price of $2 and you paid $0.08/ as premium. At the same time, you sold a put on with an exercise price of $2 and you received $0.10/ as premium.
a. Please draw the combined profit graph. Show all appropriate numbers.
b. What is the name of this strategy?
c. What is the break-even point?
d. What is your profit/loss if ST = $1.97/?
e. What is your profit/loss if ST = $1.99/?
f. What is your profit/loss if ST = $2.10/?
please dont skip the graph part
thanks
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