1) The current stock price of Sanders is at $35. A put on Sanders stock with a strike price of $35 is priced at $8 per share while a call with a strike price of $35 is priced at $10. If you implement a covered call strategy today and the stock price decrease to $28, what is your total profit or loss (assuming you implement the strategy using 100 shares)?

2)You write one IBM July 100 put contract for a premium of $8. You hold the option until the expiration date when IBM stock is at $109 per share. How much profit or loss you will realize on the investment? Remember each contract has 100 shares.