Call
Date	Exercise Price		Call	Volume
19-Jun	141		12.5	5
Put
Date	Exercise Price		Put	Volume
21-Jun	110		0.01	300

1.Diagram buying a call

a. Show the maximum loss and identify that point on the graph

b. Show the maximum profit and identify that point on the graph.

c. Show the breakeven stock price and identify that point on the graph.

d. Diagram a-c above for a higher exercise price.

e. Explain why a higher exercise price changes the numbers/points for a-c.

f. Diagram a-c above for a lower exercise price.

g. Explain why a lower exercise price changes the numbers/points for a-c.

h. Explain when you would want to buy a call option and why

i. Explain how holding the call option longer affects the time value of the option and the profit obtained.

2. Diagram writing a put

a. Show the maximum loss and identify that point on the graph.

b. Show the maximum profit and identify that point on the graph.

c. Show the breakeven stock price and identify that point on the graph.

d. Diagram a-c above for a higher exercise price

e. Explain why a higher exercise price changes the numbers/points for a-c.

f. Diagram a-c above for a lower exercise price.

g. Explain why a lower exercise price changes the numbers/points for a-c.

h. Explain when you would want to write a put option and why.

Explain how holding the put option longer affects the time value of the option and the profit obtained.

3. Diagram a covered call strategy

a. Show the maximum loss and identify that point on the graph.

b. Show the maximum profit and identify that point on the graph.

c. Show the breakeven stock price and identify that point on the graph

d. Diagram a-c above for a higher exercise price.]

e. Explain why a higher exercise price changes the numbers/points for a-c

f. Diagram a-c above for a lower exercise price.

g. Explain why a lower exercise price changes the numbers/points for a-c

h. Explain a covered call, when you would want to use it and why.

i. Explain what rolling up is on a call and why would you take this approach.

4. Diagram a protective put strategy

a. Show the maximum loss and identify that point on the graph.

b. Show the maximum profit and identify that point on the graph.

c. Show the breakeven stock price and identify that point on the graph

d. Diagram a-c above for a higher exercise price.

e. Explain why a higher exercise price changes the numbers/points for a-c.

f. Diagram a-c above for a lower exercise price.

g. Explain why a lower exercise price changes the numbers/points for a-c.

h. Explain a protective put, when you would want to use it and why.

i. Explain how and why a protective put is like buying insurance.