A stock that has a current price of $50.

A six-month european call option on this stock with an exercise price of $40 is selling for $13

A six-month european put option on this stock with an exercise price of $70 is selling for $2

a. If you write(sell) one call option then at expiry in six months, what is:

i. maximum possible loss

ii.maximum possible gain

iii.break even stock price

b.If you buy one put option then at expiry in six months, what is:

i.maximum possible loss

ii. maximum possible gain

iii. break even point

c. Calculate the profit or loss to a written covered call for each of the following stock prices at expiry in six months:

$30, $50, $70, and $90

d. Calculate the profit or loss to a written covered put for each of the following stock prices at expiry in six months:

$30, $50, $70, and $90