l1)The current price of stock is 100. You buy a put and call option each with strike of K =100.Plot the payoffs. Why would you do this?

l2) suppose you long a call with K = 40, short 2 calls with K = 50 and long a call with K=60. Plot your payoffs. Why would you undertake this strategy?

3) Suppose the current price of Stock A is $30. You buy a deep out of the money call option with strike = $40 and maturity = 3 months. Because it is so far out of the money the price is just $2. Plot your returns as a function of price in 3 months. What does this say in terms of leverage