1.) Write about a hypothetical situation in which stock XYZ last traded at 23.75 and someone owning a call option for XYZ at 25 decides it is worth exercising. (In other words, they are willing to pay more for the stock than the price it last traded at.)

2.) Comment on the use of LEAPS in place of regular options in the various strategies covered thus far. Where might they be appropriate?

Note: this was all information that was given