Option pricing:
1. An investor owns a single share of stock X, goes long on a 1-year 40-put, and goes short on a 1-year 50-call. Each option is written on a single share of stock X. Draw the (1-year) payoff diagram of this portfolio.
2. Assume that the price of a 50-put on a single share of stock X has been determined to be $2, that stock X share price today is $45, and that the time premium is 10%. Find a (non-trivial) lower bound for the price of a 40-call.