assume an effective monthly interest rate of 1% unless otherwise indicated in the problem.

1. Suppose you hold an option on Lab. Corp. of America stock (symbol LH) with K = 140 and expiration T = 1 month. Graph your future profit function if the option is a call with premium $1.51. On a separate graph, graph your future profit function if the option is a put with premium $0.49. (15 points, out of 200)