1. A customer buys 100 shares of ABC stock at $50 and buys 1 ABC Jan 50 Put @ $5. The maximum potential gain is:

A. $500 B. $4,500 C. $5,500 D. unlimited

2. A customer buys 1 ABC Jul 50 Put at $7 when the market price of ABC is $49. The breakeven point is:

A$57. B $56. C $43. D $42

3. The writer of a put on a listed stock is exercised. Upon assignment, the writer must:

A. pay the premium B. deliver cash C. buy stock D. sell stock

4. A customer buys 100 shares of ABC stock at $51 and sells 1 ABC Jan 50 Call @ $4. The market rises to $55 and the call is exercised. The customer has a:

A)$300 profit B )$400 profit C )$500 profit D ) $900 profit

5. To receive a dividend, the holder of a call contract may exercise the contract on all of the following days EXCEPT:

A. two business days prior to record date

B. two business days prior to ex-date

C. one business day prior to record date

D. one business day prior to ex-date