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On 1st October, stock OINK that pays a dividend of 8% p.a. twice a year (September and March) is currently traded at 95 EUR. The

On 1st October, stock OINK that pays a dividend of 8% p.a. twice a year (September and March) is currently traded at 95 EUR. The risk-freeinterest rate is 10% and March put with strike 105 EUR has a premium of 15 EUR.

  1. Is the option in-the-money or out-of-the-money?
  2. What is the intrinsic and extrinsic (time) value?
  3. What is the maximum loss of the portfolio (long stock + long put)?
  4. What is the maximum profit of the portfolio?and why

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