Question: please answer all the question downs below and show how you did the work Answer all of the following questions in the Excel. For the

please answer all the question downs below and show how you did the work

please answer all the question downs below and
Answer all of the following questions in the Excel. For the following problems assume the effective 6 month interest rate is 2% (Le, compute the future value) and use these premiums for S&R options with 6 months to expiration: $1,000 $93.809 $74201 $8447 $101,214 $13Z167 1. Suppose you short the 5&R index for $1000 and buy a 950strike call. Construct payoff and profit diagrams forthis position. Verify that you obtain the same payoff and profit diagram by borrowing $931.37 and buying a 950strike put. 2) Construct payoff and profit diagrams for the purchase ofa 950-strike S&R call and sale of a lOOOstrike S&R call. Verify that you obtain exactly the same profit diagram for the purchase ofa 950strike S&R put and sale ofa 1000strike 8&R put. What is the difference in the payoff diagrams for the call and put spreads? Why is there a difference? 3) (Draw profit diagrams forthe following positions: a. Long a lOSOstrike S&R straddle. b. Written 950 strike 8&R straddle. 4) Draw profit diagrams forthe following positions: a. Buy 950strike call, sell two lO50strike calls. b. Buy two 950strike calls, sell three 1050strike calls

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