1. Draw a diagram showing the variation of an investors profit and loss with the terminal stock price for a portfolio consisting of: (a) One share and a short position in one call option (b) Two shares and a short position in one call option

(c) One share and a short position in two call options (d) One share and a short position in four call options. In each case, assume that the call option has an exercise price equal to the current stock price.