Question: 1. Consider the following position: Write 1 IBM Jan 115 call @ $11.00 and buy 2 Jan 125 calls @$3.10 and write 4 Jan 120

1. Consider the following position: Write 1 IBM Jan 115 call

1. Consider the following position: Write 1 IBM Jan 115 call @ $11.00 and buy 2 Jan 125 calls @$3.10 and write 4 Jan 120 puts @ $1.20 and buy 2 Jan 125 puts @ $2.70. IBM stock is currently trading at $125.60 per share. a) Find the cost of this position. b) Write the profit function for this position c) Draw a profit-loss diagram for this position d) Find the break-even stock prices for this position e) Find the maximum profit for this position f) Find the maximum loss for this position

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