1. Suppose an investor buys 100 shares of ABC stock at $50 per share and simultaneously purchases one protective put option contract at a cost of $300(Pp=$3.00). The put option has a strike price of $45 and expires in 3 months. If the stock price falls to $40 per share at expiration, what is the investor's net profit or loss from the protective put option strategy? (10 points) 2. An investor sells short 100 shares of XYZ stock at $70 per share and simultaneously buys one call option contract on XYZ with a strike price of $80 at a cost of $500(Pcm= $5.00 ). If the price of XYZ stock drops to $60 at expiration, assuming no margin trading, what is the investor's net profit or loss from the protective call option strategy? (10 points) 3. Madison and Jacob are bullish on XDT Crop shares. Currently, the market price for XDT Crop is $100 per share, and a one-year call option contract with a strike price of $110 is priced at $500 ( Pc=$5.00 ). Madison and Jacob each have $1,000. Madison decides to purchase 10 shares, and Jacob decides to buy two option contracts. Assuming the share price at expiration is $117, calculate the profits for both Madison and Jacob. (10 points) 4. Given the information in question 3, at what share price will Madison and Jacob have the same amount of profit? ( 5 extra points)