Question 1 (*) For each of the following cases, calculate (i) the cashflow paid or received today on entering the position, (ii) the gross payoff at expiry, and (iii) the net payoff from your option trading (i.e., i + ii). All options are European style and cover 100 shares in the underlying asset. a) b) c) You enter a long call option with a strike price of $6 and premium of $2.30. At expiry, the share price is $7.80. You enter a long call option with a strike price of $9 and premium of $0.80. At expiry, the share price is $7.90. You enter a short call option with an exercise price of $5 and premium of $0.70. The share price at expiry is $5.40. You enter a short call option with an exercise price of $5 and premium of $0.70. The share price at expiry is $4.90. You buy a long put option with strike price of $10 for a premium of $1.20. At expiry, the share price is $8.50. You write (i.e., short) a put option with strike price $7 for a premium of $0.60. At expiry, the share price is $5. d) e) f)