A. Peloton (PTON)s stock price is currently $150. You are interested in 2-month at the money (ATM) European call and put options on PTON.

The options prices (premiums) are

• Call: C = 16.95
• Put: P = 14.50

B. For each of all the following four positions, create a payoff table . Draw the payoff diagram on the expiration date. What are their break-even-points? (You can create the table and chart the payoff diagram in excel spread sheet. If you choose to work on it manually on paper. Please scan your homework. )

1. Long a call
2. Short a call
3. Long a put
4. Short a put