1. You purchase one Apple July put contract with a strike price of 175 and a premium of $3. You hold the option until the expiration date at which time the Apple stock sells for $178. What profit or loss will you realize on this investment?

1. $600 loss
2. $0
3. $300 loss
4. $300 profit

2. You own 100 shares of Facebook selling at $134 and you bought a put option contract with a strike price of $125 and a premium of $3. If tomorrow there is another privacy scandal and the stock drop to $110, what will be the value of your position?

1. $13,400
2. $12,800
3. $12,500
4. $12,200
5. $11,000