Explain and show on a diagram the profit at maturity from the following combinations of positions. Please show the profit from each option or stock and the profit from the combined position on ONE graph. You should have one graph each for a, b, and c.

Please label carefully all turning points and profit levels. To find the future value, use continuous compounding, where r, risk-free interest is 1% annually and time to maturity, T is 0.0417 year. All options expire at the same time, at T=0.0417 year. You can use ranges of $65, 66, 67, 68, 69...........$82 for DELL stock price at maturity.

DELL Stock Price Strike

71.76 70 71.76 75 71.76 80

Expiration Call Premium

Sep 2.25 Sep 0.10 Sep 0.05

Put premium

0.45 3.40 8.30

a) Buyone 70 Sep call and buy one 80 Sep Put b) Buy one 70 Sep put, buy one 80 Sep put, and short a round lot (100 shares) of the underlying stock

c) Buy one 75 Sep call and sell one 75 Sep putoption.

Im not sure either, this was all the information that was provided to me. Just help me answer it to the best of your ability.

Thank you