5) A short position in stock can be protected by hold-

ing a call option. Determine the profit equations for

this position and identify the breakeven stock price

at expiration and maximum and minimum profits,

6)Buy one October 165 put contract. Hold it until the

optons expire. Determine the prohts and graph the

results Identify the breakeven stock price at expiration. What are the maximum DOSsiD all and loss on this transaction?

7)

Buy IOU shares of stock and buy one August 165

contract. Hold the position until expiration

Determine the prohts and graph the results.

Determine the breakeven stock price at e

mian.

the maxmum prott, and the maxmum loss.

For problems 16, 17, and 18, determine the profit

16Fromthe following basic foreign currency option

transactions for each of the following spot rates at

expiration: $0.90. $0.95. $1.00, S1.05, and

$1.10.

Construct a profit graph. Find the breakeven spot

role at expiranon. Assume that 100,000 euros.