9

10

11

12

15

Ahmed purchased six IBM call option contracts with a strike price of $40 when the option was quoted at $1.30. The option expires today when the value of IBM stock is $41.90. Ignoring trading costs and taxes. The total profit or loss on his investment will be $360 O True O False You sold ten put option contracts on PLT stock with an exercise price of $32.50 and an option price of $1.10. Today, the option expires and the underlying stock is selling for $34.30 a share. Ignoring trading costs and taxes, what is your total profit or loss on this investment? O 1. $2.900 O 2. $1,100 O 3.$-2.900 O 4.$700 Three months ago, you purchased a put option on WXX stock with a strike price of $60 and an option price of $.60. The option expires today when the value of WXX stock is $62.50. Ignoring trading costs and taxes, what is your total profit or loss on your investment? O 1. $60 O 2.-$310 O 3. $0 O 4. $60 At your favorite website, you found that the DMT stock paid an annual dividend of $1.32, which resulted in a dividend yield of 1.7 percent Assuming that the company has 71 million shares of stock outstanding and a PE ratio of 16. The net income for the most recent four quarters was $344,558,824 O True O False a What is the worst-case profitability scenario for an investor who sold a call on the firm's stock for a premium of $10 and a strike price of $100? 01.$90 per share profit 2. $0 per share profit 03.$10 per share profit 0 4. Unlimited losses