Assume that todays date is the 9/1/2022 and the share price of a stock stands at 10. There is an election on the 01/11/2022 and you believe that depending on which political party wins the election, the price of the share will either rise or fall by 10% (assume that there are only two political parties). Construct a portfolio using call and put options which will do well if you are correct. These options are available with expiry dates in March, June, September and December. The strike prices are 10 0.1. Draw the payoff diagram and describe the payoff mathematically.

Assume that today's date is the 9/1/2022 and the share price of a stock stands at 10. There is an election on the 01/11/2022 and you believe that depending on which political party wins the election, the price of the share will either rise or fall by 10% (assume that there are only two political parties). Construct a portfolio using call and put options which will do well if you are correct. These options are available with expiry dates in March, June, September and December. The strike prices are 10 + 0.1. Draw the payoff diagram and describe the payoff mathematically. [4] Assume that today's date is the 9/1/2022 and the share price of a stock stands at 10. There is an election on the 01/11/2022 and you believe that depending on which political party wins the election, the price of the share will either rise or fall by 10% (assume that there are only two political parties). Construct a portfolio using call and put options which will do well if you are correct. These options are available with expiry dates in March, June, September and December. The strike prices are 10 + 0.1. Draw the payoff diagram and describe the payoff mathematically. [4]