You face the following market for options. Risk free interest rates are 1% per year. Calls 109.96 103.8 98.18 100.63 95.4 91.94 88.5 84 80 82.05 Strike 4635 4640 4645 4650 4655 4660 4665 4670 4675 4680 Puts 82.2 87.36 87.69 92.93 95.73 93.13 94.8 96.6 94.7 94.41 Today Maturity Spot price 30th November 31* December 4655 Table 2 4) Verify that the put-call parity identity holds for the "at-the-money" option. [15 points) 5) Draw the payoff and the net payoff of a long call option with strike 4650 as a function of the stock price at maturity. [5 points] 6) What is the payoff and net payoff of a short put option with strike 4655 if the stock at maturity is 4650? [10 points] 7) Consider a straddle strategy with strike price 4655. How much should the stock price rise for this strategy to become profitable? How much should the stock price fall for this strategy to become profitable? [10 points]