Suppose that you buy the S&R index for $1000, buy a 1000-strike put, and borrow $980.39. Perform a payoff and profit calculation mimicking Table 3.1. Graph the resulting payoff and profit diagrams for the combined position.

For the following problems 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 $950 1000 1020 1050 1107 Call $120.405 93.809 84.470 71.802 51.873 Put $51.777 74.201 84.470 101.214 137.167 For the following problems 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 $950 1000 1020 1050 1107 Call $120.405 93.809 84.470 71.802 51.873 Put $51.777 74.201 84.470 101.214 137.167