Exercise 4 110 points) We know that the risk free rate in 2% and the following price information for European options on a given stock is provided Strike Call Put $950 $120 405 551 777 $1050371 802 $101 214 Question 12pt] Wat is the name of the strategy of selling a call (respectively put) and buying a call respectively a put) at a higher strike? Question 2 3pt Construct the payoff dingram and profit dingram for the purchase of a 1050-strike call and the sale of a 950-strike call (Position A) Question 3 (3pt): Construct the payoff diagram and the profit dinge un for the purchase of a 1050-strike put and sale of a 950-strike put (Position B). Question 4 (pt| Compare the payoff dingrams of Position A and Position B. How do you explain their difference Question 5 11pt) Compare the profit diagrams of Position A and Position B Explain why they are the same