1)

A call option on UK pounds has a strike price of $2.05/ and a cost of $0.02. What is the break-even price for the option?

	a	$2.03/
	b	$2.07/
	c	$2.05/
	d	The answer depends upon if this is a long or a short call option.

2) Which of the following is NOT true for the writer of a put option?

	a	The maximum loss is limited to the strike price of the underlying asset less the premium.
	b	The gain or loss is equal to but of the opposite sign of the buyer of a put option.
	c	The maximum gain is the amount of the premium.
	d	All of the above are true.