Suppose you write a May expiration call option on Delta Airlines with exercise price $50 and at the same time, write a Delta Airline put option with exercise price $50. The premium of the call option is $0.91 and the premium of the put option is $0.54. Assume Delta Airlines will not pay any dividend before these options expire in May.

a. Draw the payoff of this option portfolio at option expiration as a function of Delta Airlines stock price at that time.

b. What will be the profit/loss on your option portfolio if Delta Airlines is selling at $53 on the option expiration date? What if Delta Airlines is selling at $60?

c. At what two stock prices will you just break even on your investment?

d. What kind of bet is this investor making, that is, what must this investor believe about Delta Airline's stock price to justify this position?