Option &Strike Underlying Price 1.44 Calls June 1.42 1.02 0.68 Puts May 0.52 May 0.88 $1.44$1.45 0.42 $1.44$1.460.20 July 1.42 June July 1.06 1.44 0.72 2.32 Put is right to sell, call is right to buy. 7. The exercise price of per pound, giving the purchaser the right to sell pounds in June has a cost per pound of for a total price of (a) $1.46, 0.68 cents, $425.00 (b) $1.44, 1.06 cents, $662.50 (c) $1.45, 1.02 cents, $637.50 (d) $1.44, 1.42 cents, $887.50 8. Suppose you purchase a June call option with a strike price of $1.46. When the contract matures in June the underlying price is $1.48. The cost of the option and the profit/loss at maturity are: (a) S425, $1250 (we make profit here, we make 2 cents profit from buying 1.46 and sell in 1.48) (b) S425, -$1250 (c) S637.50, $1250 (d) $1450, -$1250