For questions 1, 2, 3, assume the effective 6-month interest rate is 2%, the S&R 6-month forward price is $1020, and use these premiums for S&R options with 6 months to expiration: Suppose you buy the S&R index at $1000, buy a 950-strike put and sell a 1050-strikc call; Draw the payoff diagram for this position; Find profit if S&R index price in 6 months is $900, $950, $1000 or $1100; What is the net option premium? To construct a zero-cost collar keeping the same put, in what direction would you have to change die call strike (higher or lower)