Payoff and profit at expiration from purchasing the S&R index and a 1000-strike put option. Payoff is the sum of the first two columns. Cost plus interest for the position is ($1000+$74.201)1.02=$1095.68. Profit is payoff less \$1095.68. 3) Perform a payoff and profit calculation mimicking below Table 3.1 on page of 61-62 of Chapter 3 : Suppose you buy the S&R index for $1000, buy a 1000 -strike put, and borrow $980.39. You also pay $74.201 for the 1000 -strike put and interest rate is 2%. Your job is to build a mimicking Table. (Hints: You need to learn Table 3.1 of Chapter 3 to understand how this Table was established before answering the questions. Because you borrow $980.39 for the position, the money out of your pocket is (1000 980.39=$19.61) that is the amount you pay on your own. The investor borrows $980.39 and then pays back $1000 in the future. So the cost plus interest for the position of your mimicking Table would be (1000980.39+74.201)1.02=$95.6872. For the S\&R Put (column 2) and Payoff (column 3), Chapter 2 explains how to solve that. Refer to the Lesson 2 discussion questions. In the mimicking Table, the Payoff is equal to the sum of SR index, Put and Loan. Alternatively, you could combine the columns Payoff and Cost + Interest together and the result of profit should be the same. The investor borrows $980.39 and then pays back $1000 in the future. So the total payoff would include the payment of $1000. The payment is cash outflows and shows $1000 in column Loan. It means that payoff is equal to the sum of index, put and loan (cash outflows must be negative). The final table that you present would be shown in this way:)