1. An IBM option is on the january cyrcle.what IBM options trade on April 10? (please shows all calculations for each one)

a. April MayJune July

b. April MayJulyOctober

c. May JulyOctoberJanuary

d. May JuneJuly October

e. JulyOctoberJanuaryApril

2. A 10% stock dividend is declared on stock xyz.you owned one July 55xyz call on the CBOE before this dividend was declared. the terms of the contract after the ex-dividend date will give you the right to purchase.

a. 110 shares at an exercise price of 50

b. 90 shares at an exercise price of 60 1/2

c. 110 shares at ana exercise price of 60 1/2

d. 100 shares at an exercise price of 50

e. none of above

3. A 10 % cash dividend is declared on stock xyz. you owned one july110 xyzcall (ex. exercise price is 110) on the CBOE before this dividend was declared. the terms of the contract after the ex-dividend date will give you the right to purchase.

a. 100 shares at an exercise price of 100

b. 110 shares at ana exercise price of 100

c. 110 shares at an exercise price of 110

d. 100 shares at an exercise price of 110

e. none of above

4. At t you write a (naked) IBM put option for $p at a strike price of $x. it is exercised on you at T. for tax purposes at T you

a. bought IBM stock for $x

b. sold IBM stock for $(x-p)

c. sold IBM stock for $x

d. bought IBM stock for $(x-p)

e. none of above

5. At t you bought a (naked) IBM call option for $c at strike price of $x. you exercise it at T and put the IBM stock in your portfolio. your cash flow at T is:

a. An outflow of $(c+x)

b. An inflow of $(s-x)

c. An inflow of $x

d. An outflow of $x

e. none of above