Question: Hello! If you could please help solve this problem and show step-by-step process as well as all formulas used that would be much appreciated. Thank

Hello! If you could please help solve this problem and show step-by-step process as well as all formulas used that would be much appreciated. Thank you!

3. Fill in the following payoff table (as a function of the stock price in 1 year) of a portfolio that is

(i) long one share of stock,

(ii) long one 1-year put with an exercise price of $50,

(iii) short one 1-year call with an exercise price of $60, (iv) short one 1-year call with an exercise price of $80, and

(v) short a 1-year zero-coupon bond with a face amount of $40.

Graph the payoff as a function of the stock price in 1 year. (Note: Payoff not profit, ignore the cost of these securities.)

Hello! If you could please help solve this
Price $30 $40 $50 $60 $70 $80 $90 $100 $110 Long Stock Long Put (X=50) Short Call (X=60) Short Call (X=80) Short Bond (F=40) Total Payoff

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