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Consider the following position: Write 1 Apple Jan 115 call @ $11.00 and buy 2 Jan 125 calls @$3.10 and write 4 Jan 120 puts

Consider the following position: Write 1 Apple Jan 115 call @ $11.00 and buy 2 Jan 125 calls @$3.10 and write 4 Jan 120 puts @ $1.20 and buy 2 Jan 125 puts @ $2.70. Apple stock is currently trading at $125.60 per share.

a) Find the cost of this position.

b) Write the profit function for this position

c) Draw a profit-loss diagram for this position

d) Find the break-even stock prices for this position

e) Find the maximum profit for this position

f) Find the maximum loss for this position

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