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Today is time 0. The following derivative securities, all on XYZ stock, are given: (Thus the forward contract requires a down payment of $2.62.) Consider

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Today is "time 0". The following derivative securities, all on XYZ stock, are given: (Thus the forward contract requires a down payment of $2.62.) Consider the following position: - Buy the call, - buy the put, and - sell (take a short position in) the forward contract. Questions: (a) Prepare a numerical table showing the payoff and the profit of the above position at expiration, under different scenarios. (See guidance in another document.) (b) Use the numerical table to draw graphs for the position's payoff at expiration and profit at expiration. (See guidance in another document.) Complete: The profit at expiration is negative if the stock price at that time is in the range ................. The profit is positive if the stock price is in the range Today is "time 0". The following derivative securities, all on XYZ stock, are given: (Thus the forward contract requires a down payment of $2.62.) Consider the following position: - Buy the call, - buy the put, and - sell (take a short position in) the forward contract. Questions: (a) Prepare a numerical table showing the payoff and the profit of the above position at expiration, under different scenarios. (See guidance in another document.) (b) Use the numerical table to draw graphs for the position's payoff at expiration and profit at expiration. (See guidance in another document.) Complete: The profit at expiration is negative if the stock price at that time is in the range ................. The profit is positive if the stock price is in the range

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