Question: 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

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

Please use excel and show the excel formulas used

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