nswer all of the following questions in the Excel. For the following problems assume the effective 6-month interest rate is 2% (i.e., compute the future value) and use these premiums for S&R options with 6 months to expiration:

strike	call	put
$950	$120.405	$51.777
$1,000	$93.809	$74.201
$1020	$84.47	$84.47
$1050	$71.802	$101.214
$1107	$51.873	$137.167

1. Suppose you short the S&R index for $1000 and buy a 950-strike call. Construct payoff and profit diagrams for this position. Verify that you obtain the same payoff and profit diagram by borrowing $931.37 and buying a 950-strike put.