a. Suppose you write 60 of the Apr 100 put contracts. What is your net gain or loss if Hendreeks is selling for $96 at expiration? For $116?

b. What is the break-even price, that is, the terminal stock price that results in a zero profit?

Break-even price:___________

Calls Vol. Last Puts Vol. Last Strike Price Expiration Close Hendreeks 103 103 103 103 100 100 100 100 Feb Mar Apr Jul 72 41 16 8 5.20 8.40 10.68 14.30 50 29 10 2 OOON 2.40 4.90 6.60 10.10 $96 at expiration $116 at expiration