Consider the following options portfolio. You write an August expiration call option on IBM with exercise price $150. You write an August IBM put option with exercise price $145.a. Graph the payoff of this portfolio at option expiration as a function of IBM’s stock price at that time.b. What will be the profit/loss on this position if IBM is selling at $153 on the option expiration date? What if IBM is selling at $160? c. At what two stock prices will you just break even on your investment?d. What kind of “bet” is this investor making; that is, what must this investor believe about IBM’s stock price to justify this position?

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