Question: REMINDER: Don't provide answers alone without showing your work. Question 1 (14 marks) Use the Wall Street Journal listing below to answer this question. Underlying

REMINDER: Don't provide answers alone without showing your work. Question 1 (14 marks) Use the Wall Street Journal listing below to answer this

REMINDER: Don't provide answers alone without showing your work. Question 1 (14 marks) Use the Wall Street Journal listing below to answer this question. Underlying stoclk Facebook (FB) price $75.95 Put 3.95 3.01 5.72 Expiration Strike Call Oct-14 Oct-14 75 80 1.65 Nov-14 Nov-14 75 80 4.85 3.97 2.64 6.74 Consider the following options portfolio: You write an October 2014 expiration call option on FACEBOOK with exercise price $80. You also write an October expiration FACEBOOK put option with exercise price $75 a. Graph the payoff of this portfolio at option expiration as a function of FACEBOOK's stock price at that time. (3 marks) b. What will be the profit/loss on this position if FACEBOOK is selling at $77 on the option expiration date? What if FACEBOOK is selling at $83? (6 marks) c. At what two stock prices will you just break even on your investment? (4 marks

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