Problem 23-10 Option Payoffs (L01) Look at Figure 23.9, which shows the possible future payoffs in July 2018 from a particular package of investments in Amazon options. This package of investments is called a "butterfly" by option buffs. This strategy provides a total payoff of $100 if the stock price is $1,300 and a payoff of zero if Amazon's stock price in July is either (a) $1,200 or less or (b) $1,400 or more Expiration Date Exercise PriceCall PricePut Price July 2018 $ 1,200 $161.70 $ 53.55 1,300 1,400 62.55 156.05 104.00 96.00 Required: a. What package of investments would provide you with this set of payoffs? b. How much would the package have cost you in January 2018? c. Would it have made sense to hold this package if you thought that the price of Amazon stock was unlikely to change much? FIGURE 23.9 This strategy provides a total payoff of $100 the stock price is $300 and payoff of Amazon's stock price in My is the $1200 or lessor 51400 or more. See Probler 10 $100 S1200 300 51400 Aston steckplein ay A. What package of investments would provide you with this set of payoffs? the $1,200 exercise call $1,300 exercise calls The $1,400 exercise call B. How much would the package have cost you in January 2018? (Do not round intermediate calculations. Round your answer to 2 decimal places. Negative amount should be indicated by a minus sign.|| C. Would it have made sense to hold this package if you thought that the price of Amazon stock was unlikely to change much? Would it have made sense to hold this package