Question: Write the solution in legible, clear handwriting and show all steps. Explanations are needed. Graph the payoffs against St of a portfolio that is (a)

 Write the solution in legible, clear handwriting and show all steps.

Write the solution in legible, clear handwriting and show all steps. Explanations are needed.

Graph the payoffs against St of a portfolio that is (a) long in a stock S and short in a call on S. (b) short in S and long in a call on S. (c) long in S and short in a put on S. (d) short in S and long in a put on S. Assume the calls and puts are European with strike price K. Graph the payoffs against St of a portfolio that is (a) long in a stock S and short in a call on S. (b) short in S and long in a call on S. (c) long in S and short in a put on S. (d) short in S and long in a put on S. Assume the calls and puts are European with strike price K

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