29. Draw the payoff diagrams at maturity for the following two portfolios: A: Long a ca...

29. Draw the payoff diagrams at maturity for the following two portfolios:

• A: Long a call at strike K and short a put at strike K, both options for the same maturity.
• B: Long the stock plus a borrowing of the present value of the strike K. The payoff of this portfolio is the cash-flow received at maturity from an unwinding of the positions in the portfolio.

Compare your two payoff diagrams and explain what you see.