Question: Question 6 : ( 1 5 points ) Consider a trader with 1 0 0 ( short ) IBM shares. In addition, the trader Sells

Question 6: (15 points)
Consider a trader with
100(short) IBM shares.
In addition, the trader
Sells 100 PUT options on IBM with strike x1=60 at p=$2 for each put.
Buys 100 CALL options on IBM with strike x2=60 at c=$5 for each call
Find and draw the payoff for this position as as a general function of ST.
Question 6: (15 points) Consider a trader with 100(short) IBM shares.

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