1. Early February, AFred bought one contract of a put option on Mac Donalds for $2.31 per option with a strike price of $203.17. The contract expires today so AFred exercises the option and then immediately sells the shares since the current spot price of the Mac Donalds shares is $192.78. The original cost for the buying the contract was $1, the cost for selling the shares is also $1 while exercising is free. What is AFred's profit?

2. BFred is neutral on the market and owns 200 shares of the ETF trading with the ticker symbol 'SPY' (this is an ETF that mirrors the S&P 500 index). Currently, the price of SPY is $326.07. Based on his outlook, BFred decides to use the covered call strategy to enhance his profits. Currently, a call option with a strike price of $330 expiring on October 16 trades for $10.19. If the price of SPY is $331.49 on October 16, how much extra (holding period) return did BFred make when compared to just holding the shares without executing the covered call strategy? (I.e. what is is the difference between the return with the covered call strategy and the return without the covered call strategy?) Answer as a percentage. There are no trading costs.

3. You have $10,332.50 in your account and buy one contract of Mar 2022 Crude Oil Futures at $44.91 per barrel. Except for transaction costs of $2, there are no further costs at this point. However, an initial margin of $3,575 and a maintenance margin of $3,250 is required. Assume that after one week the price has dropped to $41.39 and that you want to withdraw as much money from the account as possible without selling the future. How much money can you withdraw? (withdrawals are free)

4. BFred is convinced that Apple will move significantly over the next two months but isn't sure whether it will go up or down. He therefore decides to initiate a straddle strategy where he buys an equal number of at the money put and call options (so that the strike price of the options equals the current share price).

We have: The call option costs $24.87 and the put option costs $24.87. The trading costs per contract are $1. The current share price of Apple is $429.92.

Question: If BFred buys a total of 4 contracts, what will his profit or loss be if Apple's share price is $398.09 when the options expire? (assume that BFred exercises the in-the-money option and then immediately closes his position in the underlying; there is no cost to exercise the option while the closing of the position in the underlying costs $1).