Problem 5:

Draw a profit diagram for each of the following combined option positions.

Combination 1:

Short 1 call with an exercise price of $50 with a call price of $2, and

Long 1 call with an exercise price of $55 with a call price of $1.

Combination 2:

Short 1 call with an exercise price of $50 with a call price of $2, and

Short 1 put with an exercise price of $50 with a put price of $1.

Combination 3:

Long 1 put with an exercise price of $50 and an put price of $1, and

Short 1 call with an exercise price of $50 and a call price of $2.