a. On January 1, you sold one April S&P 500 Index futures contract at a futures price of 1,615. If the April futures price is 1,600 on February 1, your profit would be __________ if you close your position. (The contract multiplier is 250.)

b.

Marigold stock is trading at $69. You believe there is a 60% chance the price of the stock will increase by 20% over the next 3 months. You also believe there is a 10% chance the stock will drop by 5%, and you think there is only a 30% chance of a major drop in price of 60%. At-the-money 3-month puts are available at a cost of $840 per contract. What is the expected dollar profit for a writer of a naked put at the end of 3 months?