Consider the following information:

Strike price Call premium Put premium 160 14 7

a) Show the Profit/Loss diagrams, for each of the following four options (long call, short call, long put, short put). (Hint: Assume a range of $120 to $200 for Stock prices at Expiration (ST)).

b) For each of the above four options, determine i) The maximum loss ii) The break even iii) The maximum profit