1.A stock price is currently $100. Over each of the next two sixth-month periods it is expected to go up by 11% or down by 8%. The risk-free interest rate is 4%. What is the risk-neutral probability that the stock price will increase each period? (reports in % such as 12.34%)

2. Suppose you are creating a butterfly spread using call options with 3 different strike prices. Currently, the call price with strike price of $40 is $22.15, the call with strike price of $50 is $11.28, and the call with strike price of $60 is $5.78. What is the initial cash flow of the butterfly spread strategy? If it's a cash outflow, then answer in a negative number.

3. Suppose thatthe put options on a stock with strike prices $45 and $55 cost $4 and $9, respectively. Use these options to create a price at maturity will you break even? In other words, at what stock price, will you make $0 profit?