The entire question 2 payoff diagram, i have no idea, thanks

Comm 477 Assignment, due date: Feb. 4, 2016 INSTRUCTIONS: Please work on this assignment individually and submit a hard copy in class on Feb. 4, 2016. Please fill out the following information about your group [needed for case discussions and research project later in the semester]. Last Name First Name Student ID You Your team-mate #1 Your team-mate #2 Your team-mate #3 (optional) 1. Investment Strategies You would like to speculate on the rise in the price of a certain stock. The current stock price is $29 and a 3-month call with a strike of $30 costs $2.90. You have $5,800 to invest. Identify two alternative strategies, one involving investment in the stock and the other involving investment in the option. What are the potential gains and losses from each? 2. Payoff Diagrams The stock of Klaatu Inc. is currently trading at S0 dollars per share. Assuming K1