Option Questions art is trading at $59.50 on Dec. 1. The following options are available on WalMart with a January 16h expiration date. Strike Premium Put Call Strike Premium $55.00 $0.35 $57.50 $0.80 $60.00 $1.75 $60.00 $1.25 $62.50 $0.40 $65.00 $0.10 Compare the rate of return between buying 100 shares of WalMart on Dec. 1t versus purchasing a call option contract with a strike price of $62.50 on Dec. 1t if WalMart ends up trading at $64 on Jan. 16h 1) 2) Compare the rate of return between a short sale on 100 shares of Walmart on Dec. 1t using a 50% initial margin and the purchase of a Jan put option contract with a strike price of $57.50 on Dec 1 f walmart ends up trading at SS4 on Jan. 16th? 3) Suppose you own 100 shares of WalMart that were purchased 10 years ago at $40 and you are thinking about selling in January. You decide to buy a Jan. put option contract with a strike price of $55.00 on Dec. 1". What is the benefit of this "protective put position" what is the "downside"? 4) Suppose you decide to buy 100 shares of Walmart at $59.50 on Dec. 1t and simultaneously write (sell) a call option on Walmart with a Jan expiration date. What is the benefit of this strategy, what is the "downside" to this strategy? Suppose you buy a WalMart Jan 60 Call and simultaneously buy a Jan WalMart 60 put option. What are you hoping will happen to Walmart stock between now and Jan. 16? 5) Suppose you write a WalMart Jan 60 Call and simultaneously write a Jan WalMart 60 put option. What are you hoping will happen to Walmart stock between now and Jan. 16th? 6)