An investor buys I contract of call option on a stock with a strike of $9 at a premium of $0.5 and 1 contract of put option with a strike of $8 at a premium of S0.5.

1) What is the profit and loss if stock is at S10? S6?

2) What are the moneyness of each option?

3) What if the investor only sell 1 contract of put option with strike of $9 at a premium of $0.4, redo the problem.

4) If stock is currently at $9 with 1 year till maturity, do the $9 strike put and call options fulfil the put-call parity? 1 year Interest rate is 5%