Problem $2$: Match the following graphs to the relevant descriptions $($NOTE: there may be one$-$

to$-$zero, one$-$to$-$one or one$-$to$-$many matches$)$

$1.$ This graph represents a short put with a strike price of $$140$ per share, the premium is

$$0\mathrm{.}80$ per share with unlimited loss.

$2.$ This graph represents a short call with a break$-$even price of $$72\mathrm{.}50$ per share and the

maximum gain of $$1\mathrm{.}25$ per share.

$3.$ This graph represents a long put with a strike price of $$85$ per share and the

maximum loss of $$8$ per share.

$4.$ This graph represents an obligation to buy stocks at an exercise price of $$140$ per

share. At $$132$ per share, there will be neither profit nor loss in the position.

$5.$ This graph represents the right to buy stocks at $$125$ per share with unlimited gains.

$6.$ This graph represents a short put with a premium of $$8$ per share, unlimited loss and

a break$-$even price of $$135$ per share.

$7.$ This graph represents an obligation to sell stocks. At $$72\mathrm{.}50$ per share, there is neither profit nor loss in this position.

$8.$ This graph represents a short put with an exercise price of $$140$ per share and maximum gain of $$8$ per share.