1.An investor is long stock at 46 and sells a 50 call for 4. What is the investors maximum gain and loss?

2.An investor is long stock at 83 and buys an 80 put for 1. What is his maximum gain and loss?

3.An investor sells stock short at 92 and sells an 80 put for 6. What is her maximum gain and loss?

4.An investor sells stock short at 49 and buys a 50 call for 2. What is his maximum gain and loss?

5.An investor buys stock at 42 and late buys a 50 put for 2 when the market is at 54. What is his gain and loss if they exercise the put on the expiration date and the market at 48?

6.An investor buys stock at 55 and later sells a 60 call for 5 and sells a 45 put for 3. What is the maximum loss possible at expiration of the options?

7.An investor buys stock at 55 and later sells a 60 call for 5 and sells a 45 put for 3. What is the maximum loss possible at expiration of the options?

8.An investors buys 100 shares of XYZ stock at $30/share and one XYZ 40 put @ 3 to hedge the position. Over eight months, the stock appreciates to $40/share.The investor is confident that the stock is a good long-term investment with additional upside potential, but is concerned about a near-term weakness in the overall market that could wipe out his unrealized gains. What is the maximum gain for this investor?

9.An investor sells 100 shares MPS short at 70 and simultaneously writes one MPS 70 put @ 3. What is the maximum gain in this strategy?

10.Another question regarding this scenario: What is the maximum loss?

11.You are convinced that the next three months are going to be boom or bust months for IBM. Foreseeing a major increase or decrease in the stock price, you set up a position in options where you buy July 120 calls at $8.75 and you buy July 120 puts at $8.25. IBM is currently selling for $119.What are the break-even points on the upside and downside of this position?

12.Your portfolio consists of the following: long 1 call, strike price 40, short 1 call strike price 50, short 1 call strike price 70, and long 1 call strike price 80.What is the portfolio worth at stock price = $39? $40? $50? $70? $80? $81?

13.Stock price is $50.You buy a call with strike price of $45 and write a call with strike price of $55.What is the max and min profit?

14.Stock price is $30.You write a call of strike price $25 and buy a call of strike price $35.What is the maximum and minimum gain/loss of this strategy?

15.You short a put with a strike price of 50 and you long a put with a strike price of 45.At maturity, what is the value of the portfolio if the stock price is $50? Greater than $50? Between $45 and $50? Less the $45?