1. PA stock is selling for $36.60 a share. One $35 call is valued at $1.92 and

one $35 put is valued at $.49. What is the value of five call option

contracts?

2. A 1month $25 call option on BRU stock is prices at $3.22. What is the

estimated value of one share of stock?

3. A 1month $30 put option is priced at $2.05. What is the estimated value of

one share of stock?

4. HT stock is selling for $23.16 a share, the $25 puts are prices at $2.05, and

the $25 calls are priced at $.36. How much will you receive if you write

thirty $25 put option contracts?

5. A stock is priced at $26.50 and the riskfree rate of return is 3.5 percent

annually. Assume a 1year $20 call will finish in the money. What is the

current value of the call option?