19:26 D * l 19% Read Only - You can't save changes to this file. 7. Assume a pension fund purchased stock at $53. Call options at a $50 exercise price presently have a $4 premium per share. The pension fund sells a call option on the stock it owns. If the call option is exercised when the price of the stock is $56, what is the gain or loss per share to the pension fund (including its gain from holding the stock as well)? a) S4 gain b) $6 loss c) $2 loss d) $1 gain e) SO when the underlying 8. The premium on an existing put option should stock price increases. a) be negative b) decline c) increase d) be unaffected e) A and B 9. Option trading is regulated by the a) Options Clearing Corporation. b) International Securities Exchange c) Securities and Exchange Commission. d) Federal Reserve 10. The LIBOR rate is a) a Eurocurrency deposit rate b) a Eurocurrency lending rate to the bank's best customers c) a Eurocurrency exchange rate d) a Eurocurrency lending rate between Eurobanks