7. Assume after graduation, you work as portfolio manager and uses options positions to customize te risk profile of your clients. The performance to date on te portfolio is 16%.increase. There is a good chance of large losses between now and end of year, what strategy is best given your client's objective?

8. You are attempting to value a call option wit an exercise price of R100 and 1 year to expiration. The underlying stock pays no dividends, it's current price is R100, and you believe it has a chance of increasing to R115 or decreasing to R80. The risk-free rate is 10%. Calculate the call option's value using a binomial model.

I don't know how or what you mean