roblem \#1: We assume an index price of $1000, a 4% effective 6-month interest rate, and premiums of $98.07 for the 1175 -strike 6 month call and $69.49 for the 1175 -strike 6-month put. We sell a 1175 -strike call with 6 months to expiration, and we own an index position with a current value of $1000. (a) Compute the total payoff if the index price is $925 at expiration. (b) Compute the total profit if the index price is $1050 at expiration roblem#1(a):answercorrectto2decimalsroblem#1(b):answercorrectto2decimalsref5.00CorrectAnswer:925.00YourMark:2/2111.99CorrectAnswer:11.99YourMark:3/3