The following structures involve transacting in two options on the same underlier (AAPL stock). You simply add together the columns of the payoffs. 4. Buying the call as in question 1 and buying the put as in question 2. Spot price of Option Option $25 AAPL in payoff without payoff adjusted for 3 months premium premium $160 $165 $170 $175 $180 Payoff $20 $15 $10 $S $0 -SS $10 $15 $20 $160 $180 $165 $170 $175 Spot Price of Underlier 5. Buying the call as in question 1 and selling the put as in question 3. $25 Spot price of Option Option AAPL in payoff without payoff adjusted for 3 months premium premium $160 $165 $10 $170 $175 $180 Payoff $20 $15 $10 55 SO 55 -$15 -$20 $160 $165 $170 $175 Spot Price of Underlier $180 Options Structures Payoff Diagrams Complete the two columns of payoffs (without premium and adjusted for premium) and draw a payoff diagram (adjusted for premium) for each of the following options positions. 1. Buying (or going long) a call on AAPL stock expiring in 3 months with a strike of $175, The premium is $5. Spot price of Option Option AAPL in payoff without payoff adjusted for 3 months premium premium $160 $165 $170 $175 $180 525 $20 $15 $10 8 $5 So 55 -510 $15 -520 $160 $180 $165 $170 $175 Spot Price of Underlier 2. Buying (or going long) a put on AAPL stock expiring in 3 months with a strike of $175. The premium is $10. 525 Spot price of Option Option AAPL in payoff without payoff adjusted for 3 months premium premium $160 SO $165 $170 $175 S180 $20 $15 $10 $5 Payoff -55 -510 $15 520 $160 $180 $165 $170 $175 Spot Price of Underlier 3. Selling (or shorting) a put on AAPL stock expiring in 3 months with a strike of $175. The premium is $10. Spot price of Option Option $25 AAPL in payoff without payoff adjusted for 3 months premium premium S160 $165 $170 $175 $180 Payoff $20 $15 $10 55 SO S5 $10 $15 $20 S160 $180 $165 5170 $175 Spot Price of Underter