1. The bid price for a 45 strike price call to be $4.70 and the ask price to be $4.90. You choose to purchase, go long, the call. What will be the profit on the call at expiration, a. if the price of the stock is $50.00? ___________ b. if the price of the stock is $45.00?

2. The bid price for a 50 strike price put to be $2.51 and the ask price to be $2.62. You choose to sell, go short, the put. What will be the profit on the put at expiration,

if the price of the stock is $45? ____________

if the price of the stock is $50?

3. You decide to buy a call option with a strike price of 105 and a put option with a strike price of 95 on the same stock. Both options have the same maturity. The call costs $1.30 and the put costs $4.80. What will be your profit at expiration if the stock price is

$102? ____________

$85? ____________

$110? ____________

What are the break-even points?