Please explain the steps

1.Consider the following portfolio: Long 0 calls with strike price 140.0 Short 1 calls with strike price 140.0 Long 1 calls with strike price 152. 5 * Short 0 calls with strike price 152. 5 Complete the following payoff table. What choice corresponds to the last row of the table? Position ST3 140.0140.0 152. 5 portfolio Solution: a. Fill out the table for each position across the critical regions: Sr 140, 0, 140.0 152. 5 b. The position in the call struck at 140.0 has payoffs of 0, 140-ST, 140-ST, distributed across the critical regions c. Place these three numbers in the second row d. The position in the call struck at 152. 5 has payoffs of 0, 0, Sr- 152. 5 e. Place these three numbers in the third row f. To determine portfolio payoff sum the payoff across positions for each critical region g. So under Sr 140. 0, we have 0 +0 0 h. Under 140.0 152. 5, we have 140 - Sr+ ST- 152. 5 1.Consider the following portfolio: Long 0 calls with strike price 140.0 Short 1 calls with strike price 140.0 Long 1 calls with strike price 152. 5 * Short 0 calls with strike price 152. 5 Complete the following payoff table. What choice corresponds to the last row of the table? Position ST3 140.0140.0 152. 5 portfolio Solution: a. Fill out the table for each position across the critical regions: Sr 140, 0, 140.0 152. 5 b. The position in the call struck at 140.0 has payoffs of 0, 140-ST, 140-ST, distributed across the critical regions c. Place these three numbers in the second row d. The position in the call struck at 152. 5 has payoffs of 0, 0, Sr- 152. 5 e. Place these three numbers in the third row f. To determine portfolio payoff sum the payoff across positions for each critical region g. So under Sr 140. 0, we have 0 +0 0 h. Under 140.0 152. 5, we have 140 - Sr+ ST- 152. 5