Assume all options are European, and that the underlying asset is a non-dividend paying stock, unless otherwise specified. A protective put strategy involves buying both a put option on a stock and the underlying stock itself. i. Draw a payoff diagram (not a profit-and-loss diagram) for a protective put strategy. Make sure to label all relevant parts of the diagram. Why do you think this strategy has its name? (5 marks) ii. Using put-call parity, explain why the payoff of a protective put resembles the shape of the payoff of a call option