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1 . You hold a long position in one ABC 7 5 call option for a premium of $ 2 . Ignoring transaction costs, find

1. You hold a long position in one ABC 75 call option for a premium of $2. Ignoring transaction costs, find the break-even price of the position at expiration. Graph the payoff and profit curve. (10 marks)
2. You hold a short position in one ABC 40 call option for a premium of $1.5. Ignoring transaction costs, find the break-even price of the position at expiration. Graph the payoff and profit
curve. (10 marks)
3. You hold a long position in one ABC 100 put option for a premium of $5. Ignoring transaction costs, find the break-even price of the position at expiration. Graph the payoff and profit
curve. (10 marks)
4. You hold a short position in one ABC 150 put option for a premium of $5. Ignoring transaction costs, find the break-even price of the position at expiration. Graph the payoff and profit
curve. (10 marks)
5.You hold a long position in one ABC 50 call warrant with the conversion ratio of 10 and a lot size of 1,000. Assume that you paid $0.5 per warrant to buy a lot and the current price of the
stock is $53. Show the profit per lot of warrants. (5 marks)
6. You hold a long position in one ABC 80 put warrant with the conversion ratio of 100 and a lot size of 1,000. Assume that you paid $0.07 per warrant to buy a lot and the current price of the
stock is $85. Show the profit per lot of warrants.
(5 marks)
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