For all questions, assume you are a customer, not a dealer and assume all option contracts are for one share. Signs matter. Negative numbers, e.g., premium paid, should be shown as such. Use the Answer Sheet provided to submit your answers. Enter all dollar and percentage answers to two decimals.

14. Assume the VIX is trading at 14 and the S&P 500 is at 4,500. What is the implied move on the S&P 500 (+/-) index points, over the next 31 days. Round your answer to the nearest full point. 15. Using a one-step binomial model, calculate the risk neutral probability of an up move , given a risk-free rate of 5%, and up factor of 1.15 and a down factor of 0.85, for an option expiring in six months.