1) Todays stock price is 105, 95 dollar call. On expiration day the stock price is 125. Price of the call option is 14. What is the value of the call on expiration day? What is the Net Profit and should the option be used?

A. Value of call 30 per share. Net profit 16. Call option should be used.

B. Value of call -30 per share. Net profit 0. Call option should not be used.

C. Value of call 25 pre share. Net profit 0. Call option should not be used.

D. Value of call 20 per share. Net profit 16. Call option should be used.

2)Todays stock price is 65, 95-dollar put, on the expiration day, stock price is 105. Price of the put is 35. What is the value of the put on expiration day and do you exercise the option?

A. 0. No.

B. 30, yes.

C. 35. Yes.

D. 20, no.