1) Answer the following quetaions briefly a) What are the uses of interost nate and currency swaps? b)) What are the four typer of eption positions? c)) What are the fictors whicb affect the value of a stock option? d) What is the differenoe betwem a strangle and a stradfle? e) Comment en the following ratement." Optioes and fitures are zero surn games". (5+5*25 Marks) 2) The price of a uock is 567 . A trader sells 5 put optice contracts on the stock with a strike trice ef 570 when be optice price is 54 . The options are exercived when the stock price is 567. What is the tnder's net profit ot toss? 3 Marks 3) A traber crates a long butterfly spread from options with strike pricei 560,565 , and 570 by trading a toal of 400 eptiens. The options are worth 511,514 , and 518 . What is the miaimum net gain (anter the cost of the opeions it talen into ascounen? 6 Marks at fixed rate of itterot. The following nutes pet antum ture bece quoted and the swo somp teecement in which the busk as an internsedurg gain to hasis points per annum and the two compunies gain 15 bais points per anmum. 6 Marki 5) Given the following cotimane the valse of the Americas put option wing Deriva Cem. Seock price 535; Strike price-540; Risk fite nate -65k: Velatisty-25\%: Time to maturity-2 yean Time steps 50 4 Ttarks 6) Consider an option co a took with the followirg detaili. year. A dividend of $1 is expected atter six months. Use Deriva Getn to value the option under the assumption that it is a) call b) put 6 Marks 2