Question: 5. You bought a call option on with an exercise price of $2 and you paid $0.05/ as premium. At the same time, you sold

5. You bought a call option on with an exercise price of $2 and you paid $0.05/ as premium. At the same time, you sold a put on with an exercise price of $2 and you received $0.12/ as premium.

a. Please draw the combined profit graph. Show all appropriate numbers.

b. What is the name of this strategy?

c. What is the break-even point?

d. What is your profit/loss if ST = $1.94/?

e. What is your profit/loss if ST = $1.99/?

f. What is your profit/loss if ST = $2.10/?

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