e. Choices a. and b, are both orect han the premm 2. A stock is selling for $45.75 with a call option avelable s common stoc price does dhat s rinm a. 16.39% b. 14.375% . 12.57% d. 4.38% e. 3.83% 3. Tom Smith purchases 100 shares of Double Systems stock for $63 per share wnd wishes to hedge his position by writing a 100 share call option on his holdings. The option has a 6s strike price and a premium of $8.75. If the stock is selling at $64 at the time of ex purstion, what will be the overall dollar gain or loss on this covered option playt (Consider the change in stock value as well as the gain or loss on the option.) a. $975,00 b. $875,00 c. $775.00 d. $100.00 e. $87.50 4. Six-month call options with strike prices of $35 and S40 cost 56 and S4, respectively, is What the maximum gain when a bull spread is created by trading a total of 200 options? a. $100 b. $200 c. $300 d. $400 e. None of the above. A trader creates a long butterfly spread from options with strike by trading a total of 400 options (100 options at strike of $60,200 and 100 options at strike of $70). The options are worth $11,S14, and $18 What is the maximum net loss (after the cost of the options is taken into account trade could incur? 5. options at strike of a. $100 b. $200 c. $300 d. $400 e. None of the above