7. You purchase one call and sell a put option on Amazon stock ($2,000) with the same exercise price and maturity. The call premium is $20 and the put premium is $40. What is your highest potential gain from this position? A. $20 B. $60 C. $1980 D. Unlimited 8. Next year's earnings are estimated to be $6. The company plans to reinvest 33% of its earnings at 12%. If firm's market capitalization rate is 8%, what is the present value of growth opportunities? A. $6 B. $18.67 C. $24.50 D. $44.44 E. None of the above. 9. Recently, stock market suffers a lot of volatility and you believe the market volatility with continue in the near future. Which of the following investment choices does not fit your belief? A. Long market volatility index funds like VIXY. B. Long market index funds like SPY. C. Purchase a straddle on S&P 500. D. None of the above