17. This question has two parts. You decide to execute the following trading strategy. Buy a stock ABC, buy a put option on ABC with strike price 25, and write a call option on ABC with strike price 35. The current stock price is 28. The put option premium is $4 and the call option premium is $5. Both options are European and have the same time to maturity.

(a) Examine the payoff of this strategy at maturity. What is the payoff when the underlying price is below 25, between 25 and 35, and above 35. Please fill out the empty cells. (4 points)

ST ST =35 Stock Put Call Overall Payoff

(b) At what value of stock price at maturity (ST) will the profits be exactly equal to 0? (3 points)

1?. This question has E1! parts. You decide to execute the following trading strategy. Buy a stock ABC, buy a put option on ABC with strike price 25, and write a call option on ABC with strike price 35. The current stock price is 28. The put option premium is $4 and the call option premium is 55. Both options are European and have the same time to maturity. {a} Examine the payoff of iis strategy at maturity. What is the payoff when the underlying price is below 25., between 25 and 35. and above 35. Please fill out the empty cells. [4 points) {b} At what value of stock price at maturity (51-) will the prots be exactly equal to it? (3 points}