1.

	Strike		Calls			Puts
Close	Price	Expiration	Vol.	Last		Vol.	Last
Hendreeks
103	100	Feb	72	5.20		50	2.40
103	100	Mar	41	8.40		29	4.90
103	100	Apr	16	10.68		10	6.60
103	100	Jul	8	14.30		2	10.10

a. Suppose you write 30 of the Apr 100 put contracts. What is your net gain or loss if Hendreeks is selling for $97.20 at expiration? For $110?

b. What is the break-even price, that is, the terminal stock price that results in a zero profit? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

2. A put option with a strike price of $35 sells for $6.10. The option expires in two months and the current stock price is $38.00. If the risk-free interest rate is 3 percent, what is the price of a call option with the same strike price? (Do not round intermediate calculations. Round your answer to 2 decimal places.)