You buy a share of stock, write a 1-year call option with X = $80, and buy a 1-year put option with X = $80. Your net outlay to establish the entire portfolio is $78.4. The stock pays no dividends....

You buy a share of stock, write a 1-year call option withX = $80, and buy a 1-year put option withX = $80. Your net outlay to establish the entire portfolio is $78.4. The stock pays no dividends.

1.What is the payoff of your portfolio?

2.What must be the risk-free interest rate?