An investor has a call option on a stock that is currently selling for $35. The call option is in the money by $3. The call option's strike price is: [1 Mark] a. $32. b. $35. c. $38. d. None of the above Q3. A put on a stock with a strike price of $50 is priced at $4 per share, while a call with a strike price of $50 is priced at $6. What is the maximum per share loss to the writer of the put? [1 Mark] a. $46. b. $50. c. Unlimited. d. None of the above 1 Q4. The payoff to the long position in a forward rate agreement (FRA) can be dupli- cated by which of the following combinations of interest rate options? [1 Mark] Interest rate call Interest rate put a. Long Long b. Long Short C. Short Long d. Short Short Q5. Which of the following statements about futures margins is least likely correct? [1 Mark] a. The initial margin is set by the clearinghouse based on the volatility of the price of the underlying asset. b. If the balance of the margin account exceeds the initial margin requirement, the trader can remove the excess funds from the account. c. If the margin account balance falls below the maintenance margin level, the account balance must be brought back up to the maintenance level. d. None of the above Q6. An investor holds a short position in four September gold futures contracts. Each gold futures contract is for delivery of 100 ounces of gold. When the contract was entered into on day zero, the futures price was $3 50 per ounce. The initial margin is $1,750 per contract, and the maintenance margin is $1,312.50 per contract. The following table gives information on the price of gold for September delivery over a