Question: Please draw the graph 4. Amazon (AMZN) pays no dividend and its stock sells for $1,570/ share. A 1-month European call option on AMZN with

Please draw the graph 4. Amazon (AMZN) pays no dividend and

Please draw the graph

4. Amazon (AMZN) pays no dividend and its stock sells for $1,570/ share. A 1-month European call option on AMZN with a strike price of $1,570 sells for 49 . The 1-month risk free rate is 2% on a continuously compounded basis. Each contract of a European option is for 100 shares of the underlying asset. a. What is the expected price of a 1-month European put option on AMZN? b. Consider the following two portfolios: Draw a payoff diagram for the two portfolios with respect to ST, the price of AMZN stock at maturity. 4. Amazon (AMZN) pays no dividend and its stock sells for $1,570/ share. A 1-month European call option on AMZN with a strike price of $1,570 sells for 49 . The 1-month risk free rate is 2% on a continuously compounded basis. Each contract of a European option is for 100 shares of the underlying asset. a. What is the expected price of a 1-month European put option on AMZN? b. Consider the following two portfolios: Draw a payoff diagram for the two portfolios with respect to ST, the price of AMZN stock at maturity

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