$41$

$3$ points

Assume that you write a short call on SMKY stock and that you are interested in a trading strategy that includes options and stocks to minimize your losses if SMKY$\text{'}$s price rises. At what market price does your expected profit on this strategy become constant? If you need to assume that you purchase SMKY$,$ assume that you bought it at $$53\mathrm{.}89.$ Further assume that the current price of SMKY is $$84\mathrm{.}73,$ the exercise price is $$38\mathrm{.}70($you chose to write the contract with a nonstandard strike price$),$ and the option premium is $$5\mathrm{.}55.$ Round your answer to two decimals.

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$42$

$3$ points

You write a call option on SMKY for $$8\mathrm{.}58,$ but it has a non$-$standard strike price that may not be in a multiple of $$5.$ The strike price at expiration is $$45,$ and the current price is $$39\mathrm{.}47.$ What market price is your breakeven point? Round your answer to two decimals.

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