Problem
Draw the expiration date payoff diagrams for the following investment strategies: (You can draw by hand.)
1. Buy a put option with a strike price of $30, sell a put option with a strike price of $80 and borrow the present value of $50 at the risk-free rate.
2. Buy a call option with a strike price of $100, sell a call option with a strike price of $150 and buy a share of stock.