A call option and a put option both written on Microsoft stock is available with exercise price $50 and expiration date 6 months from today. The call premium is $9 and the put premium is $5. As part of an investment strategy, you plan to take long position on both the call option and put option.

a. What would be your investment in the strategy? 1 point

b. Show graphically your payoffs and profits from your investment on the expiration date. 3 points

c. On expiration date, what could be your maximum profit and maximum loss from the investment strategy? 1 point

d. Find out at what prices of the stock at expiration, you would make no profit and no loss. 1 Point