I’m working on a business multi-part question and need an explanation and answer to help me learn.

I’m working on a business multi-part question and need an explanation and answer to help me learn.

Consider the following positions on the Intel stock. (Data sheet attached in image)

For each of the positions choose the strike X = $45. Choose January option.

a. Short 1 call.

b. Short 1 put.

c. Short 1 call + long 1 put.

d. Long 1 call + long 1 put.

e. Long 1 put with strike $45 and short 1 put with strike $47.5.

f. Long 1 put with strike $45, short 2 puts with strike $47.5, and long 1 put with strike $50.

Assume that you enter and close the positions at the mid point of bid-ask spread.

Assume that you trade each contract on October 27 (i.e. enter the positions). For each position (a-f) answer the following questions:

1. Close out your positions on November 4. Calculate your net dollar gain or loss.

2. Now assume that you exercise options on November 4. For each position compute your net gain or loss.

3. For each position draw the payoff diagram, marking the strikes and the stock price on November 4 clearly, as well as your payoff.