You buy a share of stock, write a one-year call option with X = $10, and buy a one-year put option with X = $10. What is the payoff of your

portfolio?

Position	ST<10	ST>10
Buy Stock	(a)	(b)
Short Call	(c)	(d)
Long Put	(e)	(f)
Total	(g)	(g)

(Please explain thoroughly, thank you)

Multiple choice

(a) S_T; (b) S_T; (c) 0;(d) 0; (e) 0; (f) 0; (g) S_T; (h) S_T

(a) S_T; (b) S_T; (c) 0; (d) -(S_T-10); (e) 10-S_T; (f) 0; (g) 10; (h) 10

(a) S_T; (b) S_T; (c) 0; (d) 10-S_T; (e) -(S_T-10); (f) 0; (g) 10; (h) 10

(a) 0; (b) S_T; (c) 0; (d) -(S_T-10); (e) 0; (f) S_T-10; (g) 0; (h) 10