Information Question i Assume for the following options questions that the underlying stock does not pay a dividend. Q 28 Question 28 (2 points) If you are holding a call option you want the interest rate to: Select one: a. Go down b. Stay the same c. Go up d. Ambiguous Q 29 Question 29 (2 points) If you wrote a put option you want the volatility of the underlying stock to: Select one: a. Go down b. Stay the same c. Go up d. Ambiguous Q 30 Question 30 (2 points) If you wrote an American call option you prefer that the time to maturity of the option is: Select one: a. Lower b. Higher c. Ambiguous Q 31 Question 31 (2 points) You are holding a put option that is about to expire and you

have to make a final decision about whether to exercise. The exercise price is $180. The underlying stock price is $100. Should you exercise?

Select one:

a. No

b. Yes

c. Impossible to determine

have to make a final decision about whether to exercise. The exercise price is $180. The underlying stock price is $100. Should you exercise? Select one: a. No b. Yes c. Impossible to determine