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Problem 3 Suppose the stock of Cameco currently trades at $26 per share. The following...

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Problem 3 Suppose the stock of Cameco currently trades at $26 per share. The following options on the stock are available: A. Draw a profit diagram for a short position in the put. Label the diagram well. For example, indicate the intersection with the horizontal and vertical axes, show the maximum profit and loss if available, B. Draw a profit diagram for a short position in the call. Label the diagram well. C. If these options expire in 2 years instead of 1 year, how will their premium change? Higher or lower? Comment. D. Put options can be awarded to executives as incentive compensation. True or false? Briefly explain

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