1. Assume that an investor purchases a stock for $38 and a put for $0.50 with a strike price of $35. The investor sells a call for $0.50 with a strike price of $40. What is the maximum profit and loss diagram for this position ?
2. What should you pay for a property which you expect to sell for $ 149300 in 8 years if you can earn 12% compounded annually? (Express your answer as a positive number and to two decimal places.)