a. Use the following table of K&S stock index option contract values and strike prices for all parts of this question. All options mature in six months. Risk free rate is 2% per annum with semi-annual compounding. Required (show all step-by-step calculations for each part): i. Construct a butterfly spread where K2 = 0.5(K1 + Ks) using puts. ii. Show that the cost of this butterfly spread either using puts or calls is the same. ii. Draw the payoff table for different values of K&S index if the butterfly spread is created using puts. iv. Draw profit diagram for different values of K&S index if the butterfly spread is created using puts. Put (5) Strike ($) Call ($) 950 60.2025 1000 46.9045 1050 35.901 25.8885 37.1005 50.607 a. Use the following table of K&S stock index option contract values and strike prices for all parts of this question. All options mature in six months. Risk free rate is 2% per annum with semi-annual compounding. Required (show all step-by-step calculations for each part): i. Construct a butterfly spread where K2 = 0.5(K1 + Ks) using puts. ii. Show that the cost of this butterfly spread either using puts or calls is the same. ii. Draw the payoff table for different values of K&S index if the butterfly spread is created using puts. iv. Draw profit diagram for different values of K&S index if the butterfly spread is created using puts. Put (5) Strike ($) Call ($) 950 60.2025 1000 46.9045 1050 35.901 25.8885 37.1005 50.607