Draw payoff diagrams for the following portfolios entered into at times:

( a) A long position in one stock.

( b) A long position of K kr into the money market account.

(c) A short position in one put with strike K kr.

(d) A long position in two calls with strike K kr. (e) Again consider exercise a-d.

Now draw profit diagrams instead of payoff diagrams. Clearly state any assumptions introduced.