1. Suppose your outlook calls for a more extensive decline in GE. With the stock at 18.03, the April 17.00 puts are offered at 0.21.

(a) If you buy one of these puts at the current market price, what is your break-even level?

(b) What is the maximum amount that you can gain?

(c) What is the maximum amount that you can lose?

(d) Answer questions ac for a sale of this put.

(e) If you sell one of these puts at the current market price, what is the potential effective purchase price of the stock at expiration?

(f) The multiplier for this options contract is $100. What is the cash value of one of these puts?

(g) If at April expiration GE closes at 16.50, what is the profit for the put buyer, and what is the loss for the put seller?

(h) Write a profit/loss table for a sale of this put at expiration.