Question 6. Consider a position established by buying a call option with strike price K = 100 and selling (writing) a put option with strike price K = 60. Draw the payoff graph for this portfolio. Question 7. Consider a two year bond with par value $1000, current price of $1000, and annual coupons of $80. What is the yield to maturity, duration, modified duration, and convexity? Question 8. Same bond as the previous question. If the yield to maturity increased by one percentage point, what is the new price? First compute approximation using just duration or modified duration. Second compute approximation with (modified) duration and convexity