covered call writer break even at (4) The current price of an asset is $100, An out-of-the-money American put option with an exercise price of $90 is purchased along with'the asset. If the breakeven point for this hedge is at an asset price of $114 at expirationjwhatis the value of the American put at the time of purchase? (5) A stock index fiutures what is your per-share gain or loss? ying two calls and one put on ABC stock, all with a strike price of $45. e each, and the put costs $4. If you close your position when ABC stock is priced at $55, (2) If a stock is selling for $25, the exercise price of a put option on that stock is $20, and the time to expiration of the option is 90 days, what are the minimum and maximum prices for the put today? (3) The current price of an asset is $75. A three-month, at-the-money American call option on the asset has a current value of $5. At what value of the asset will(a covered call writer break even at expiration? (4) The current price of an asset is $100, An out-of-the-money American put option with an exercise price of $90 is purchased along with'the asset. If the breakeven point for this hedge islat an asset price of $114 at expirationjwhatis the value of the American put at the time of purchase? (5)A stock index futures contract matures in one year. The cash index currently has a level of $1,000 with a dividend yield of 2 %, and the interest rate is 5%. What does the spot-future parity imply a cash index level of? (6) The Star Income Fund's average daily total assets were $100 million for the year just completed. Its stocks purchases for the year were $20 million, while its sales were $12.5 million. What was its turnover? (7) You purchase 25 calls contracts on Blue Ox stock. The strike price is $22, and the premium is $1. If the stock is selling for $24 per share at expiration, what is your call options worth? What is your net profit? What if the stock were selling for $23? $22? Each contract size is 100 shares. ad Co ch (8) Stock in BB is currently prices $20 per share. a call option with a $20 strike and 60 days to maturity is quoted at $2. Compare the percentage gains and losses from a $2,000 investment in the stock versus the option in 60 days for stock prices of $26, $20, and $18. (9) The Mango Fund has a net asset value of $50 per share. It changes a 3% load. How much will you pay for 100 shares? (10) Suppose you purchase 10 orange juice contracts today at the settle price of $1 per pound. How much do these 10 contracts cost you? If the settle price is lower tomorrow by 2 cents per pound, how much do you make or lose? The contract size is 15,000 pounds. (20 marks) Vidm is a large multinational company and one of the