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Draw the payout diagrams (at maturity) for the following combinations of ABC stock and its options. Assume all put and call options on ABC have

Draw the payout diagrams (at maturity) for the following combinations of ABC stock

and its options. Assume all put and call options on ABC have the same strike price

K = $100 and maturity T.

(a) Purchased (long) one share of ABC stock, sold (short) one call option.

(b) Short two shares of ABC stock, long three put options.

(c) Long one risk-free zero-coupon bond with a par value of $100 , short one call

option.

(d) Long one share of ABC stock, short two call options, long one put option.

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