here is question 2 about corporate finance

Question 2 Suppose JD Ltd holds 1 million shares of SCB common stock, currently valued at $48. Joey, the company's director, is concerned that over the next few months the value of the shares might decline and she would like to hedge that risk by supplementing the shares with one of the following two option strategies, all of which expire at the same point in the future. (1) A long position in a put option with an exercise price of $45 and a premium of $2. (ii) A short position in a call option with an exercise price of $45 and a premium of $4. a. Draw the payoff diagrams for the option strategies (i) and (ii) b. Based on the results in (a), which strategy is more appropriate for JD Ltd? Please discuss in detail. Suppose that JD has arranged to borrow HK$100 million at HIBOR+0.2% for 3 years. The company's director, Joey, fears that the market interest rate will increase in the near future and she wants to convert the company's debt from floating rate to fixed rate. She arranges a swap agreement with TX Corp. TX Corp has a 3-year $100M loan outstanding on which it pays 5.3%. The details of the swap agreement are as follows: JD will receive HIBOR p.a. and pay a fixed rate of 5% p.a. Duration: 3 years Notional principal: HK$100 million Counterparty: TX Corp c. Is the swap agreement effective in converting the nature of JD Ltd's debt? Explain your answer detail and with appropriate diagram(s)