Please solve it ASAP with all requirements

5. Derivatives Efficient Market Hypothesis You are given the following data for a listed company as follows: Options Traded on Legal and General Share Price Exercise Price Calls Puts Sep Dec Mar Sep Dec Mar 65.90 64 4.50 7.75 9.75 3.50 6.75 8.75 68 3.50 5.75 7.75 5.75 8.75 10.75 a) Draw a profit diagram for an investor in a call option with an exercise price of 64 that expires in March and explain the diagram. Undertake the same analysis for the writer of the call. Comment on the contention that options are a zero-sum game for the writer and investor in options. ) b) Explain carefully why the March calls are trading at higher prices than the December calls. ) c) Draw a diagram illustrating a straddle, using calls and puts expiring in March and an exercise price of 64. Explain why an investor might consider it worthwhile to invest in a straddle and comment on the expected profitability of such an investment. () d) Explain what is meant by forwarding contracts and futures using examples. List the main advantages/disadvantages of their use. () e) Explain what is meant by the efficient market hypothesis and how tests of the hypothesis are structured ) f) Discuss the implications of the efficient market hypothesis for financial managers and security analysts.