PART A- Protective Put. You bought a stock at $100 and simultaneously bought a 95 strike price put option for $4. What is your maximum possible profit?

		$5
		$10
		$153
		unbounded

PART B- Protective Put. You bought a stock at $100 and simultaneously bought a 95 strike price put option for $4. At what underlying stock price do you break-even?

		$96
		$100
		$104
		$110

PART C When we value options, you may say that we are really valuing a portfolio of stocks and bonds that exactly replicate the payoff of the option.

True

False

PART D We can allow for stochastic (randomly varying over time) volatility inour complete markets method of option pricing so long as that volatility is tradeable in the market.

True

False

PART E -Protective Put. You bought a stock at $100 and simultaneously bought a 95 strike price put option for $4. What is your maximum possible loss?

		$4
		$9
		$15
		unbounded