Question 3.4 only

Strike Call Put $950 $120.405 $51.777 1000 93.809 74.20 1020 84.470 84.470 1050 71.802 101.214 1107 51.873 137.167 Suppose you buy the S&R index for $1000 and buy a 950-strike put. Construct payoff and profit diagrams for this position. Verify that you obtain the same payoff and profit diagram by investing $931.37 in zero-coupon bonds and buying a 950-strike call. 3.3 3.4 Suppose you short the S&R index for $1000 and buy a 950-strike call. Construct payoff and profit diagrams for this position. Verify that you obtain the same payoff and profit diagram by borrowing $931.37 and buying a 950-strike put