6.Suppose you hold LLL employee stock options representing options to buy 10,000 shares of LLL stock. You wish to hedge your position by buying put options with three-month expirations and a $22.50 strike price. Immediately after establishing your put options hedge, volatility for LLL stock suddenly jumps to 45 percent. This changes the number of put options required to hedge your employee stock options. LLL accountants estimated the value of these options using the Black-Scholes-Merton formula and the following assumptions:

S= current stock price = $20.72

K= option strike price = $23.15

r= risk-free interest rate = 0.043

?= stock volatility = 0.29

T= time to expiration = 3.5 years

How many put option contracts are now required?(Do not round intermediate calculations. Round your answer to the nearest whole number.)

5.A stock is currently priced at $74 and will move up by a factor of 1.20 or down by a factor of 0.80 over the next period. The risk-free rate of interest is 4.2 percent. What is the value of a call option with a strike price of $75?(Do not round intermediate calculations. Round your answer to 2 decimal places.)

4.Suppose you have a stock market portfolio with a beta of 1.15 that is currently worth $300 million. You wish to hedge against a decline using index options. Suppose you decide to use SPX calls. Calculate the number of contracts needed if the call option you pick has a delta of 0.50 and the S&P 500 Index is at 2050.(A negative value should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to the nearest whole number.)

3.What is the value of a put option if the underlying stock price is $42, the strike price is $35, the underlying stock volatility is 47 percent, and the risk-free rate is 5 percent? Assume the option has 140 days to expiration.(Use 365 days in a year. Do not round intermediate calculations. Round your answer to 2 decimal places.)

Strike Calls Puts Close Price Expiration Vol. Last Vol. Last Hendreeks 103 100 Feb 72 5.20 50 2.40 103 100 Mar 41 8. 40 29 4.90 103 100 Apr 16 10.68 10 6.60 103 100 Jul B 14.30 2 10. 10 a. Suppose you write 30 of the July 100 put contracts. What is your net gain or loss if Hendreeks is selling for $90 at expiration? For $110? $90 at expiration $110 at expiration b. What is the break-even price, that is, the terminal stock price that results in a zero profit? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Break-even priceYou buy a call with a strike price of $?0 on stock that you have shorted at $70 (this is a \"protective call\"). What are the expiration date prots to this position for stock prices of $60, $65.. $70, $75, and $80 if the call premium is $3.40? (A negative value should be Indicated by a minus sign. Do not round intermediate calculations. Leave no cells blank - be certain to enter \"0" wherever required. Round your call profit and net prot answers to 2 decimal places and round your other answers to the nearest whole numben] Suppose you buy one SPX put option with a strike of 2,100 and write one SPX put option with a strike of 2,125. What are the payoffs at maturity to this position for S&P 500 Index levels of 2000, 2050, 2100, 2150, and 2200? (A negative value should be indicated by a minus sign. Leave no cells blank - be certain to enter "O" wherever required.) Index level Long put Short put payoff payoff Total payoff 2000 2050 2100 2150 2200