please answer all questions

1. Consider an asset with a current spot price of $50. You buy a one year 10% out of the money call on the asset with a premium of $3. You also buy a one year 10% out of the money put on the asset with a premium of $4. Draw the payoff diagram for this structure (the call combined with the put) At what price(s) will you breakeven after accounting for the premium? 2. Consider an asset with a current spot price of $50 You sell a one year 10% out of the money call on the asset with a premium of $3. You also buy a one year buy a 10% out of the money put on the asset with a premium of $4. Draw the payoff diagram for this structure (the call combined with the put) At what prices will you breakeven after accounting for the premium? 3. Repeat the analysis of the last slide (slide 16 titled "Try The Formula") for a call with a strike of $110 SO = $100 -10% u=2 1/2015 What is the premium? Try the problem using the risk neutral probability, also try the problem using delta and B. 4. Repeat the analysis of the last slide for a put with a strike of $110 SO = $100 -10% u=2 d=1/20S What is the premium? Try the problem using the risk neutral probability, also try the problem using delta and B. 5. Repeat the calculation for another set of parameters SO - $100 -10% u=3/ 25 d-2/3 What is the premium on a 10% out of the money call? If the spot price is SI00 then the strike on the call is $110 (1 +10%) * $100 = 110%*$100 = $110 What is the premium of a 10% out of the money put If the spot price is $100 then the strike on the call is 590 (1 - 10%) * $100 - 90% * $100 $90 1. Consider an asset with a current spot price of $50. You buy a one year 10% out of the money call on the asset with a premium of $3. You also buy a one year 10% out of the money put on the asset with a premium of $4. Draw the payoff diagram for this structure (the call combined with the put) At what price(s) will you breakeven after accounting for the premium? 2. Consider an asset with a current spot price of $50 You sell a one year 10% out of the money call on the asset with a premium of $3. You also buy a one year buy a 10% out of the money put on the asset with a premium of $4. Draw the payoff diagram for this structure (the call combined with the put) At what prices will you breakeven after accounting for the premium? 3. Repeat the analysis of the last slide (slide 16 titled "Try The Formula") for a call with a strike of $110 SO = $100 -10% u=2 1/2015 What is the premium? Try the problem using the risk neutral probability, also try the problem using delta and B. 4. Repeat the analysis of the last slide for a put with a strike of $110 SO = $100 -10% u=2 d=1/20S What is the premium? Try the problem using the risk neutral probability, also try the problem using delta and B. 5. Repeat the calculation for another set of parameters SO - $100 -10% u=3/ 25 d-2/3 What is the premium on a 10% out of the money call? If the spot price is SI00 then the strike on the call is $110 (1 +10%) * $100 = 110%*$100 = $110 What is the premium of a 10% out of the money put If the spot price is $100 then the strike on the call is 590 (1 - 10%) * $100 - 90% * $100 $90