Answer the following questions:

1. You purchased six ABC $70 Dec 2020 put option contracts at a quoted price of $2.50. What is your net gain or loss on this investment if the price of ABC is $68 on the option expiration date?

2. Suppose that several rumors concerning ABC have circulated on the internet. These rumors have led to an increase in volatility in the stock. To take advantage of this situation, you decide to buy both a December put and a call option on ABC. The put has an exercise price of $68 and the call has an exercise price of $72. You purchased the call at a price of $2.00 and the put at a price of $1.20. What will be your total profit or loss on these option positions if the stock price is $75 on the day the options expire?

3. Suppose that you sold four Feb 2021 put contracts on ABC stock at an option price of $0.75. The options have an exercise price of $60. At expiry assume that ABC stock is selling for $63 a share. What is your total profit or loss on this trade? Ignore transaction costs and taxes.