1When an investor engages in a short position in derivatives with a $7.50 put sold for $0.20 to obtain maximum profits at the maturity, what should be the price of the underlying stock?

2)What is the maximum potential losses of the following position: long 100, $5.00 calls purchased for $0.20 each?

3)Assume equity is trading at RM8.20 and an $8.00 call is trading at $0.30. What is the time premium for this call option?