1.One suggestion that was made was to use a derivative security to obtain exposure to movements in the S&P/ASX 200 index. What derivative security (or securities) could be used to achieve this?

2.One share that we have in our portfolio is BHP Billiton Limited. There is a call option on BHP Billiton Limited shares with an exercise price of $35. If we expect the BHP Billiton Limited share price to be $38.50 at the option expiry date in six months, what will be the pay-off from the call option?

3.If the current stock price is $38.50, risk-free rate was currently 3.85 per cent, and the share return volatility (variance) of BHP Billiton Limited's ordinary shares was 5.00 per cent per annum, what would be the traded price of the BHP Billiton Limited call option in Q2?

Please provide workings out/description so I can learn how to answer

Thanks