I have attached 5 questions that I am needing help with, the questions are for Finance and are relatively short.

Fina 4355/5355 Fall 2016 Professor Wu UT Tyler Homework Set #2 Direction: Launch a new Word document and begin by putting your name and the date on the top right hand corner of the first page. Then choose the best answer for each of the following five problems. Each question is worth 5 points of extra credit. When you are finished, upload the Word document containing your answers to blackboard by the deadline indicated below. NO printed copies of your answers or those emailed to the instructor are accepted. Note that this assignment is due by noon on Tuesday, 11/1/16. 1. You purchase one crude oil July 40 call contract for a premium of $2.25 (per barrel). You hold the option until the expiration date when crude oil sells for $43 a barrel. You will realize a _____ on the investment. (Hint: Assume that each call covers 1,000 barrels) a. $3,000 gain b. $2,250 gain c. $5,250 gain d. $2,250 loss e. $750 gain 2. You purchase one crude oil March 50 put contract for a premium of $7.35 per barrel. The maximum profit that you could gain from this strategy is __________. (Hint: Recall that each put covers 1,000 barrels) a. $7,350 b. $42,650 c. $50,000 d. $57,350 e. unlimited 3. You buy one crude August 50 European call contract and one crude August 50 European put contract. The call premium is $2.20 per barrel and the put premium is $9.65 per barrel. At least a part of your strategy will be profitable if you believe that the crude oil spot price _____. (Hint: Think about what must happen to crude oil's spot price at expiration for either option to be profitable.) a. will be lower than $40.35 in August b. will be between $40.35 and $52.20 in August c. will be higher than $52.20 in August d. either a. or c. e. will be between $47.80 and $59.65 in August 4. An investor is bearish on natural gas and decided to long a put with a strike price of $2.50. If the option was purchased for a price of $0.09 and current spot price of natural gas is $2.46, what is the break-even point for the investor? (Hint: Break-even point is the stock price at which the investor will have exactly zero profit or loss. Be sure to consider the effect of the option premium.) a. $0.09 b. $2.41 c. $2.46 d. $2.50 e. $2.55 5. What is the margin deposit on a futures contract priced at $41,350 and a 12% initial margin requirement? a. $2,068 b. $3,308 c. $4,135 d. $4,962 e. $6,203