1) You buy a 1-year put option and sell the corresponding call option. Both options are written on 1 share of IBM stock and both have an exercise price of $116. In addition, you also buy 1 share of IBM stock. What is the net payoff you receive from this 3-asset portfolio if at expiration the price of each share of IBM stock is $20?

2) Consider two "corresponding" options, consisting of a call and a put with the exact same parameter values. For this pair, the call premium is $2.3. If the current price of the underlying asset is $22 and the present value of the exercise price is $22, what is the premium of the put option, P? Write the answer with one decimal; e.g., 3.2. Do NOT use the $ symbol in your answer; just write a numerical value.

3) Consider two "corresponding" options, consisting of a call and a put with the exact same parameter values. For this pair, the current price of the underlying asset is $92, the options have an exercise price of $90 and they expire in 4 months. Additionally, the risk-free rate is 5% p.a. What is the difference between the premium of the put option, P, and the premium of the call option, C; that is, what is the value of P - C? Write the answer with two decimals; e.g., 3.24. Do NOT use the $ symbol in your answer; just write a numerical value. Of course, include the negative sign if the answer is negative; but do not include the positive sign if the answer is positive. NOTE: Use the continuous time version of the Put-Call Parity equation

4) A European PUT option written on one share of Deadwood Lumber Co. stock has the following parameter values: S = $28, X = $30, r = 5% p.a., s = 40% p.a., T = 3 months. Find the premium of this option, rounded to 2 decimals

5) A put option expires $48 in the money, meaning that the option's payoff is $48. What is the payoff at expiration of the "corresponding" call option; that is, a call option with the exact same parameter values as the put option?