3. Construct diagrams depicting the payoff at expiration and the net payoff (i.e., profit diagram) of the following positions. (Assume the interest rate is zero:)

a. You buy 1 put @ K = 45 (P = 3), sell 2 puts @ K = 55 (P = 9), and buy 1 put @ K = 60 (P = 12).Clearly mark on your diagram appropriate coordinates on each axis, such as minimum and maximum payoffs, breakeven points, etc.

b. You enter into a long futures contract @ f = 25 and sell a call option @ K = 30 (C = 2).

c. You buy 2 calls @ K = 50 (C = 8.5), sell 3 calls @ K = 55 (C = 6.2), and buy 1 call option @ K = 60 (C = 4.6).