show your work clearly

Chrome File Edit View History Bookmarks People Tab Window Help G 8 100% 27 Fri 11:47 AM QE .. . My Academics | CalCentra X & Topic: Econ 136: Problem X Problem-Set-1-Fall-2020.| x Cross Rates - Bloomberg x Get Registered | Students X New Tab X + - -> C D @ File | /Users/jungtaekchoi/Downloads/Problem-Set-1-Fall-2020.pdf Apps M Gmail YouTube Maps Translate & Assignment 7 - M... FELLEZS Silenced... P CS 61A (137 unrea... Problem-Set-1-Fall-2020.pdf 2/2 4. Referring to the CME rulebook, (i) what are the two currencies in the RUB/USD futures contract and (ii) what is the unit of trading (also known as the quantity or contract size)? (Hint: This rulebook is online at http://www.cmegroup.com/) 5. A call option on Apple, Inc. (AAPL) stock with a strike price of USD 135 can be bought from or sold to Bank of America for USD 4. Curiously, an AAPL call with the same maturity but with a strike price of USD 145 can be bought from or sold to HSBC for USD 4. If you plan to hold the options to maturity: (a) Devise a zero-net-investment arbitrage strategy (you use the premium from selling one option to buy the other) to exploit the pricing anomaly. (b) Draw the payoff diagram for your position at maturity. (c) What is the name of your position? 6. Draw the payoff diagram for the following position: (i) long one 25-strike call, (ii) short two 30-strike calls, (iii) long one 35-strike call. Assume all options have the same underlying and the same time to expiration. Be sure to label the axes of your graph. Briefly explain how these options combine to form the payoff diagram that you drew. + Problem-Set-1-....pdf Scan Sep 10, 2....pdf SEP 11