Roy constructs an options portfolio based on the MXC stock. He writes a call option with an exercise price $74 and writes a put option with exercise price $70.

Both options have the same expiration date.

	MXC Call	MXC Put
Option price	$0.42	$0.58
Exercise price	$74	$70

a. Draw the payoff diagram of this portfolio at option expiration as a function of MXC stock price at that time. b. What will be the profit/loss on this position if MXC is selling at $72 on the option expiration date? What if MXC is selling at $77? c. At what two stock prices will Roy break even on his position?