We consider the following options strategy on ALPHABET and its total payoff at the expiry date of the short-term option. Option Remaining Life 0 Type Call Call Call Position Short x1 Long x 2 Short x 1 Strike 700 820 940 0.5 - 2 3 0 For the options with a remaining life, we use BSM model to determine their values. We assume a volatility of 30% and a risk-free rate of 4%. (a) Compute the total payoff for S= 700, 820 and 940. (2 marks) (b) Use Excel to draw the payoff pattern for prices between $500 and $1100 with a step of $10mak n TUITIONn nonno We consider the following options strategy on ALPHABET and its total payoff at the expiry date of the short-term option. Option Remaining Life 0 Type Call Call Call Position Short x1 Long x 2 Short x 1 Strike 700 820 940 0.5 - 2 3 0 For the options with a remaining life, we use BSM model to determine their values. We assume a volatility of 30% and a risk-free rate of 4%. (a) Compute the total payoff for S= 700, 820 and 940. (2 marks) (b) Use Excel to draw the payoff pattern for prices between $500 and $1100 with a step of $10mak n TUITIONn nonno