A synthetic short sale is created with a long put and a short call with the same strike price and expiration dates. Bank of America stock is currently trading at $21.71 per share. A May $25 call is trading at $2.75 and a May $25 put is currently trading at $2.25.

1. Evaluate the payoffs of a short sale of BOA and the synthetic short sale at prices of $18, $25 and $28. Dont forget the premiums on the options in your calculations and that each contract is for 100 shares. Assume your short sale is 100 shares also.
2. Draw a payoff profile for each strategy.
3. Compare the payoffs of each strategy in terms of monetary outlay and payoff at each price.