Question 7 Part A Using an example, discuss the differences between protected puts and long calls. Why would an investor choose one over the other? Part B Take BSM and calculate call option premiums using Sn : $45 for strikes X : $4, $45, $5 as well as other inputs of your choice [r,e,T} common to all three. Derive the prot function for a buttery spread relative to the three strikes. Using your premiums, what are: i} Breakeven points ii} Maximum prot iii) Maximum loss Then, discuss the payoff function, what type of investor it suits and why an investor would choose such a spread