1. If a trader creates a Put Butterfly Spread using 3800, 3600 and 3400 strike prices of ASX200 index, which costs 370, 280 and 210 respectively, what would be the max gain from this strategy. The value of one index point is $25.

Group of answer choices

Gain of $4500

Gain of $200

Gain of $4800

Gain of $18

2. The price of a stock is $48. A trader buys 1 call option contract on the stock with a strike price of $50 when the option price is $5. When does the trader make a profit?

Group of answer choices

When the stock price is below $50

When the stock price is above $53

When the stock price is below $48

When the stock price is above $55

3. What is the price of a 0.75 year European put option on a dividend-paying stock, where the stock price is $ 56, the strike price is $ 70, and a dividend of $ 0.65 is expected in 0.25 years? The risk-free interest rate is 0.08 per annum for all maturities given in decimal places.