Consider a stock of company XYZ that is trading for $100 a share. Consider European Call options on the stock with a strike price of $100 and expiration in 3 months. These call options are selling for $5 each.

Draw a diagram in each part (a)-(d) below showing the variation of an investors profit and loss with the terminal stock price for a portfolio consisting of:

(a) Long one hundred shares of stock and short one hundred call options.

(b) Long two hundred shares of stock and short three hundred call options.

(c) Short four hundred shares of stock and long two hundred call options.

(d) Short one hundred shares of stock and long two hundred call options.