The XYZ Companys stock is priced at $113.5. Consider the following options on the stock: o A 3-month European put option with a strike price of $110 is trading at $3.5; o A 3-month European call option with a strike price of $115 is trading at $5.8; o A 3-month European call option with a strike price of $120 is trading at $0.40.

(a) Suppose an investor buys 400 put options with a strike price of $110, sells 100 call options with a strike price of $115, and sells 300 call options with a strike price of $120. Make a table of Gain/Loss of this position as a function of the stock price at options maturity.

(b) Draw a diagram of the investors Gain/Loss of part (a). What are the break-even prices? What is the maximum gain possible? What is the max loss possible?

(c) What is the Intrinsic Value of the overall position of part (a)?

(d) What are the margin requirements for the investor of part (a)?