2. You own a put option on Phosfranc Inc. stock with a strike price of $50. The current stock price is $50. Which of the following would you prefer?

A. The stock price goes up.

B. The stock price goes down.

C. You don't care what happens to the stock price.

D. The stock price stays the same.

5. What is the payoff for a call option with a strike price of $50 if the underlying stock price at expiration is $85

A. $50

B. $45

C. $35

D. $140

6. What is the payoff for the buyer of a call option with a strike price of $35 if the underlying stock price at expiration is $30?

A. $5

B. $0

C. $10

D. $20