This information is a description of a spread consisting of the following: (1) a long call with exercise price K1, (2) a short put with exercise price K1, (3) a long put with exercise price K2, and (4) a short call with exercise price K2. K2 is greater than K1.

1.Draw a graph the shows the profits from the options listed above.

 

2. Show the payout at all possible price ranges for the underlying security of the spread described.