cam Question 1 (50 points) Q1 (50 points) Consider the following payoff at time T, obtained by engaging in a strategy involving call options on an underlying security with the current price So = 105. At time 0, the European call options on S that expire at T are available for the following strike prices: 70, 80, 90, 100, 110, and 120. The prices of those options are (note that the prices are listed out of order): $3, $6, $10, $19, $26, and $14 dollars. Payoff at T 20 0 80 90 100 110 ST The portfolio of European call options that would result in the above payoff at time T graph and the amount the investor would have to pay at time 0 to implement the strategy are: Buy 3 * C(X=80) + write 4 * C(X=90) + buy 2 * C(X=110); the investor would have to pay $3 Buy 2 * C(X=80) + write 4 * C(X=90) + buy 2 * C(X=110); the investor would have to pay $3