1. Three put options on a stock have the same expiration date and strike prices of $55, $60, and $65. the market prices are$3, $5, and $8, respectively. what is the profit of the strategy if s=57 and s=67 respectively a. 1 and -1 b. -1 and -1 c. 1 and 1 d. -1 and 1 2. A stock price is currently $50. It is known that at the end of six months it will be either $60 or $42. The risk free rate of interest with continuous compounding is 8% per annum. calculate the value of a six month european call option on the stock with an exercise price of $52. a. the call is out of the money and therefore it is worthless b.5.33 c.9.71 d. 6.96 3. what is the price of a european put option on a non-dividend paying stock when the price is $69, the strike price is $75, the risk free interest rate is 5% per annum, the volatility is 35% per annum and the time to maturity is six months. a. 6.40 b.9.27 c.5.12 d. 6 4. suppose that observations on a stock price (in dollar) at the end of each 15 consecutive weeks are as follows: 30.2, 32.0, 31.1, 30.1, 30.2, 30.3, 30.6, 33.0, 32.9, 33.0, 33.5, 35.3, 33.7,33.5, 33.2 what is the estimated annualized volatility and standard error? a. 20.79% b.34% and .0473 c.25% and .0743 d. 25% and .0473