"Assume zero rates and no dividends, the forward price is $100. If an European put at K=110 is quoted at $111, what is the minimum amount you can make at expiry by selling the put at the quoted price?" QUESTION 8 "Assume zero rates and no dividends, the forward price is $100. If a put at K=110 is quoted for $9, you can lock in an arbitrage profit by ("'long"'" or ""short"') the forward at K=110 to receive dollars and ("'buy"" or "'sell"') the put at K=110 for dollars " "Suppose you constructed an option portfolio on the 1-year S\&P index that include (i) short 1 put contract at K=1500, (ii) long 1 put contract at K=2000, (iii) short 1 call contract at K=3000, and (iv) long 1 call contract at K=3500. How much will be the payoff if the index level (i) drops to 1400 , (ii) stays at 2700 (iii) shoots to 3600