1. An investor makes the following transactions in calls on a stock: (1) buys one call with a premium of $3.50 and exercise price of $20, (2) buys one call with a premium of $1.00 and exercise price of $25, and (3) sells two calls with a premium of $2.00 each and an exercise price of $22.50. What is (are) the breakeven price(s) (ignore the future value of the premiums)? C) $21 and $26 D) $18.50 and $26.50 A) $21 only $20.50 and $24.50. B) Option Chain 2: This is an option chain for options expires in 110 days. You can assume T 0.3 ye and there is no bid-ask spread, i.e. each option can be bought and sold at the same price. Calls Strikes 8.83 7.53 6.36 5.32 4.41 3.63 56 58 60 62 64 Puts 2.00 2.68 3.50 4.45 5.53 6.73 2. Using information from Option Chain 2 To construct an asymmetric butterfly using the given call options, the strategy has A) 5 B) 5 with the low strike at 56, the peak at 62 and the high strike at 66 written calls at 56-strike, 2 long calls at 62-strike and 3 long calls at 66 strike. written calls at 62-strike, 2 long calls at 56-strike and 3 long calls at 66 strike. C) 5 long calls at 62-strike, 2 long calls at 56-strike and 3 short calls at 66 strike. written calls at 62-strike, 3 long calls at 56-strike and 2 long calls at 66 strike. D) 5 3. Using information from Option Chain 2. ider an asymmetric butterfly constructed using the given put options with the low strike at 58 eak at 60 and the high strike at 64, for one unit of the underly'ing asset, the strategy costs low strike at 58, the A) 3.24. B) 1.21. C) 0.39 D) 1.6