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m (a) Please use the following information to solve prices X and Y (b) Draw payoff diagrams for this trade: Buy 100 shares, buy a

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(a) Please use the following information to solve prices X and Y (b) Draw payoff diagrams for this trade: Buy 100 shares, buy a put with an exercise price of $40, sell a call with an exercise price of $60. The put option is written on 100 shares of the same stock and has the same 6-month maturity. The current stock price is $50 per share. (c) Draw payoff diagrams for the same trade as (b) except that you borrow $4902. The semi-annual interest rate is 2%, so you will have to repay $49021.02=$5000 after six months

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