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Consider the following options portfolio. You write a January maturity call option on Canadian Pacific with exercise price 60. You write a January Canadian Pacific put option with exercise price 55. a) Graph the payoff of this portfolio at option expiration as a function of Canadian Pacific's stock price at that time. (10 MARKS) b) What will be the profit/loss on this position if Canadian Pacific is selling at 57 on the option maturity date? What if Canadian Pacific is selling at 65? Use the figure below (and bid/ask prices) to answer these questions. (15 MARKS) Con Pacific $58.74 164 8584 Sepol $60.00 0.55 0.80 0.55 15 2934 Oct01 $65.00 0.30 0.55 0.50 47 422 Janoz $47.50 12.00 12.50 12.50 20 84 $50.00p0.50 0.75 0.80 15 85 $55.000 1.85 2.10 2.10 43 $60.00 3.25 3.50 3.30 24 Naans Consider the following options portfolio. You write a January maturity call option on Canadian Pacific with exercise price 60. You write a January Canadian Pacific put option with exercise price 55. a) Graph the payoff of this portfolio at option expiration as a function of Canadian Pacific's stock price at that time. (10 MARKS) b) What will be the profit/loss on this position if Canadian Pacific is selling at 57 on the option maturity date? What if Canadian Pacific is selling at 65? Use the figure below (and bid/ask prices) to answer these questions. (15 MARKS) Con Pacific $58.74 164 8584 Sepol $60.00 0.55 0.80 0.55 15 2934 Oct01 $65.00 0.30 0.55 0.50 47 422 Janoz $47.50 12.00 12.50 12.50 20 84 $50.00p0.50 0.75 0.80 15 85 $55.000 1.85 2.10 2.10 43 $60.00 3.25 3.50 3.30 24 Naans

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