stocks to reduce risk or to produce income. Buying protective puts guards against downside risk while allowing for upside potential. Writing covered calls allow investors to earn premium income on a stock they expect to remain stable in price.WFX Ltd$.$ has a current stock price of $$80$ and does not pay dividends. European call option on the stock is priced $$17\mathrm{.}29$ and European put option is priced $$2\mathrm{.}23,$ for $100-$share contracts expiring in $9$ months, at a strike price of $$70$

$\mathrm{.}1.$ What is the total cost of buying a protective put?

$2.$ What is the total cost of writing a covered call?

$3.$ What will be the payoff and profit of the protective put if the stock price on maturity is $$60,$ $$70,$ $$80,$ $$86?$

$4.$ What will be the payoff and profit of the covered call if the stock price on maturity is $$60,$ $$70,$ $$80,$ $$86?$