Paul wrote one August $2024$ expiration call option on

Wellness Inc. with an exercise price of $$80.$ He also wrote

one August $2024$ expiration Wellness put option with an

exercise price $$75.$

a$.$ Construct the payoff table and the diagram for this portfolio at

expiration as a function of Wellness's stock price at that

time.

b$.$ If Wellness is selling at $$77$ at expiration, what will be the

profit$/$loss position $?$ What about if the price of Wellness

becomes $$85$ at expiration? $($Assume that the call and put

premium are $$3\mathrm{.}50$ and $$1\mathrm{.}55$ respectively for August $2024$

expiration$)$

c$.$ Explain the motives and justifications for Paul to execute

these transactions and maintain the portfolio.