Chapter 15, Problem 10PS

An investor purchases a stock for $\$\text{38}$ and a put for $\$0.\text{5}0$ with a strike price of $\$\text{35}$ . The investor sells a call For $\$0.\text{5}0$ with a strike price of $\$\text{4}0$ . $\left(\text{LO 15}-\text{1}\right)$
a. What is the maximum profit and loss for this position?
b. Draw the profit and loss diagram for this strategy as a function of the Stock price at expiration.