Exercise 1.5. From Options Industry Council: "A long call condor consists of four different call options of the same expiration. The strategy is constructed of 1 long in-the-money call, 1 short higher middle strike in-the-money call, 1 short middle out-of-money call, 1 long highest strike out-of-money call." Assume the spot price is So = 60. Consider the following spread: 1 long 50 call @ 10.45, 1 short 55 call @ 6.24, 1 short 65 call @ 1.31, 1 long 70 call @ 0.46. (a) Sketch the payoff and the profit diagrams. (6) Does buying the above spread represent a bet that the stock price will grow, fall or stay flat? (c) Create a spread with the identical payoff but using only puts. Exercise 1.5. From Options Industry Council: "A long call condor consists of four different call options of the same expiration. The strategy is constructed of 1 long in-the-money call, 1 short higher middle strike in-the-money call, 1 short middle out-of-money call, 1 long highest strike out-of-money call." Assume the spot price is So = 60. Consider the following spread: 1 long 50 call @ 10.45, 1 short 55 call @ 6.24, 1 short 65 call @ 1.31, 1 long 70 call @ 0.46. (a) Sketch the payoff and the profit diagrams. (6) Does buying the above spread represent a bet that the stock price will grow, fall or stay flat? (c) Create a spread with the identical payoff but using only puts