6. The price of LMN common is currently 5100 and the per contract prices of the August 90 calls and puts are $1400 and $300 respectively. The relevant annual continuously compounded risk-free rate is 436 . If expiration is three months away, what profitable action could be taken by an efficient market. maker in LMN options? a. Conversion b. Reverse Conversion c. None 7. A conversion can be considered to be: a. long stock and short synthetic stock. b. long put and short synthetic put. c. short call and long synthetic call. d. All of the above 8. A volatility-trading market maker is short 15035 deita puts. What is her: position delta? a. 35 b. 5250 c. 5250 d. 150 Re the previous question, if the market maker-does not hedge her position, her downside risk is associated with: a. increasing stock price. b. decreasing stock price. c. Both A and B. folatility-trading equity option market makers generally hedge their option ortfolios with: a. interest rate futures contracts. b. stock shares. c. treasury securities. d. calloptions