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1. You are the purchaser of a call option with $5 premium and $145 exercise price. You bought this option when the stock price was
1. You are the purchaser of a call option with $5 premium and $145 exercise price. You bought this option when the stock price was $120. If the stock price now is $155, what is the net cash flow to you if you exercise?
$10 $5 $30 $35
2. You are the purchaser of a put option where the premium is $4 and exercise price is $52. You bought this option when the stock price was $52. If the stock price is $42 right now, what is your net cash flow?
negative $14 negative $6 $6 $4
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