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1) If we want to calculate our gains or losses when buying a call, which of the following formulas do we use? A. (Strike price

1) If we want to calculate our gains or losses when buying a call, which of the following formulas do we use?

A.

(Strike price * 100) - (Stock price * 100) - (call premium * 100)

B.

(Stock price * 100) - (Strike price * 100) - (call premium * 100)

C.

(Stock price * 100) - (Strike price * 100) + (call premium * 100)

D.

(Strike price * 100) - (Stock price * 100) + (call premium * 100)

2) If we want to calculate our gains or losses when buying a put, which of the following formulas do we use?

A.

(Strike price * 100) - (Stock price * 100) - (call premium * 100)

B.

(Stock price * 100) - (Strike price * 100) - (call premium * 100)

C.

(Stock price * 100) - (Strike price * 100) + (call premium * 100)

D.

(Strike price * 100) - (Stock price * 100) + (call premium * 100)

3)

If we want to calculate our gains or losses when writing a put, which of the following formulas would we use if the buyer chose not to exercise the option?

A.

(Strike price * 100) - (Stock price * 100) - (call premium * 100)

B.

(Stock price * 100) - (Strike price * 100) - (call premium * 100)

C.

(Stock price * 100) - (Strike price * 100) + (call premium * 100)

D.

(Strike price * 100) - (Stock price * 100) + (call premium * 100)

E.

None of the above

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