We consider the following options strategy on TSLA and its total payoff at the expiry date of the short-term option. Option 1 Remaining Life 0 Type Call Call Call Position Short x 1 Long x 3 Short x2 Strike 350 375 400 2 0.5 3 0 For the options with a remaining life, we use BSM model to determine their values. We assume a volatility of 20% and a risk-free rate of 4%. (a) Compute the total payoff for S = 350, 375 and 400. (2 marks) (b) Use Excel to draw the payoff pattern for prices between $150 and $770 with a step of $10. (3 marks) We consider the following options strategy on TSLA and its total payoff at the expiry date of the short-term option. Option 1 Remaining Life 0 Type Call Call Call Position Short x 1 Long x 3 Short x2 Strike 350 375 400 2 0.5 3 0 For the options with a remaining life, we use BSM model to determine their values. We assume a volatility of 20% and a risk-free rate of 4%. (a) Compute the total payoff for S = 350, 375 and 400. (2 marks) (b) Use Excel to draw the payoff pattern for prices between $150 and $770 with a step of $10