Question V: Suppose you short the S&R index for $1000 and buy a 1050-strike call. Construct payoff and profit dia- grams for this position. Verify that you obtain the same payoff and profit diagram by borrowing $1029.41 and buying a 1050-strike put. For Questions IV and V, assume the effective 6-month interest rate is 2%, the S&R 6-month forward price is $1020, and use these premiums for S&R options with 6 months to expiration: Strike Call Put $950 $51.777 74.201 1000 $120.405 93.809 84.470 71.802 1020 1050 84.470 101.214 Question V: Suppose you short the S&R index for $1000 and buy a 1050-strike call. Construct payoff and profit dia- grams for this position. Verify that you obtain the same payoff and profit diagram by borrowing $1029.41 and buying a 1050-strike put. For Questions IV and V, assume the effective 6-month interest rate is 2%, the S&R 6-month forward price is $1020, and use these premiums for S&R options with 6 months to expiration: Strike Call Put $950 $51.777 74.201 1000 $120.405 93.809 84.470 71.802 1020 1050 84.470 101.214