PLEASE UPLOAD A PIC OF THE DIAGRAM.

1.Suppose that you hold a share of stock and a put option on that share with a strike price of $100. DRAW the payoff diagram when the option expires. (PLEASE UPLOAD A PIC)

2. Suppose you buy a one-year European call option on Apple with an exercise price of $100 and sell a one-year put option with the same exercise price. The current stock price is $100, and the interest rate is 10%. DRAW a position diagram showing the payoffs from your investments. How much will the combined position cost you?

3. Suppose that you buy a six-month put option on stock Y with an exercise price of $150, and sells a six-month put option on Y with an exercise price of $50. DRAW a position diagram showing the payoffs when the options expire. Do you think when this combined position is useful?

4. Use the Black-Scholes formula to find the value of the following put option.

(a) Time to expiration 1 year

(b) Standard deviation 20% per year

(c) Exercise price $100

(d) Stock price $100

(e) Interest rate 3%

PLEASE SHOW THE SOLUTION AND EXPLANATION OF THE FINAL ANSWERS. THANK YOU.