Problem #7: We assume an index price of $1025, a 8% effective 6-month interest rate, and premiums of $80.87 for the 1075- strike 6-month call and $54.91 for the 1075-strike 6-month put. Suppose that you short the S&R index and sell a 1075-strike put. (a) Compute the total payoff if the index price is $1175 at expiration. (b) Compute the total profit if the index price is $1000 at expiration. answer correct to 2 decimals Problem #7(a): 1075.00 Correct Answer: -1175.00 Your Mark: 0/2 answer correct to 2 decimals Problem #7(b): 2191.30 Correct Answer: 91.30 Your Mark: 0/3