Assume an investor purchases a March put option on shares of the DBS with an exercise price of 280 and a March expiry date at a price of 10. Calculate the profit and loss at the expiry date for the prices of 320 and 265. Draw the profit graph of this option. (3 marks) b. Assume an investor takes 2 positions: first, a long position in a call option with an exercise price of 50 and a premium of 8; second, a long position in a put option with the exercise price of 50 and a premium of 7. What is the name of this combination strategy? When do investors hold this combination strategy? Show the profit diagram combining both the positions. Calculate the breakeven points. (5 marks) c. Determine the lower bound of the price (minimum price) for a six month call when the share price is 120, the call's exercise price is 100, and the interest rate for the six month period is 5 per cent. (2 marks) Assume an investor purchases a March put option on shares of the DBS with an exercise price of 280 and a March expiry date at a price of 10. Calculate the profit and loss at the expiry date for the prices of 320 and 265. Draw the profit graph of this option. (3 marks) b. Assume an investor takes 2 positions: first, a long position in a call option with an exercise price of 50 and a premium of 8; second, a long position in a put option with the exercise price of 50 and a premium of 7. What is the name of this combination strategy? When do investors hold this combination strategy? Show the profit diagram combining both the positions. Calculate the breakeven points. (5 marks) c. Determine the lower bound of the price (minimum price) for a six month call when the share price is 120, the call's exercise price is 100, and the interest rate for the six month period is 5 per cent. (2 marks)