\begin{tabular}{|l|l|} \hline Question 1 & \begin{tabular}{l} Suppose you believe that the price of a particular underlying, currently selling at $99, is \\ going to increase substantially in the next six months. The put option has an exercise \\ price of $95 and sells for $5. What is your profit/loss if the price of the underlying six \\ months from now is $85? \\ A. -5 \\ B. 0 \\ C. 5 \end{tabular} \\ \hline Your choice & C \\ \hline Calculation & \\ Steps & \\ \hline \end{tabular} \begin{tabular}{|l|l|} \hline Question 2 & \begin{tabular}{l} All else held constant, which of the following would make the call option on the \\ common stock less valuable? \\ A. Stock price rises. \\ B. Stock price volatility reduces. \\ C. A lower exercise price \end{tabular} \\ \hline Your Choice & \\ \hline Calculation & \\ Steps & \\ \hline \end{tabular}