a. Draw the profit and loss payoff diagrams and explain in words for: i. A long position in a Digital Double knock-out Call Option with strike of 80 and barriers of 80 and 120 with a premium paid of 2. ii. A short position in a Down and In Put Option with a strike of 100 and a barrier of 75 with a premium received of 10. In both cases assume that the underlying is currently at 100 and the barrier is only monitored at maturity. b. How does the value of both these options change with: i. The location of the barriers ii. The barrier monitoring frequency iii. Implied Volatility iv. The price of the underlying (assume that the initial price is 100) c. Briefly describe the covered call selling strategy and discuss the empirical findings of Feldman and Roy (2004). Do you consider covered call selling to be risky?