1. An investor with no other positions sells 1 ABC Jan 45 call at 2.50. If the option expires when the stock is trading at 44.50, what is the investor's profit or loss? Please show all work.

A. $50 profit

B. $50 loss

C. $250 profit

D. $250 loss

2. A customer buys 1 ABC Jan 60 put at 6 and writes 1 ABC Jan 75 put at 13. The maximum loss is: Please show all work.

A. $700

B. $800

C. $900

D. $1,500

3. Your customer buys 100 shares of TIP stock at 59 and sells a TIP 60 call at 4. The stock's price rises to 70 and the option is exercised. For tax purposes, the customer must report sales proceeds of: Please show all work.

A. $6,400 and cost basis of $5,900

B. $6,000 and cost basis of $5,500

C. $7,000 and cost basis of $5,900

D. $7,000 and cost basis of $6,500