please answer only questions # 9, 10, & 11 , everything else has already been answered!!!!!
Consider a stock priced at $30 with a standard deviation of 3 . The risk-free rate is .05 . There are put and call options available at exercise prices of 30 and a time to expiration of six months. The calls are priced at $2.89 and the puts cost $2.15. There are no dividends on the stock and the options are European. Assume that all transactions consist of 100 shares or one contract (100 options). Use this information to answer questions 5 through 11. 5. What is your profit if you buy a call contract, hold it to expiration and the stock price at expiration is $37 ? a. $700 b. $289 c. $2,711 d. $411 e. cannot be determined 6. What is the breakeven stock price at expiration on the transaction described in problem 5 ? a. $32.89 b. $30.00 c. $27.11 d. $32.15 e. there is no breakeven 7. What is the polential maximum profit on the transaction described in problem 5? a. $2,711 b. infinity c. zero d. $3,289 o. $3,000 8. Suppose the investor constructed a covered call. At expiration the stock price is \$27. What is the investor's profit? [Pft =STSO+C if ST>X ] a. $589 b. $289 c. $2,989 d. $2,711 e. $11 9. What is the breakeven stock price at expiration for the transaction described in problem 8 ? a. $27.11 b. $30.00 c. $32.89 d. $29.89 e. cannot be determined 8. Suppose the investor constructed a covered call. At expiration the stock price is \$27. What is the investor's profit? [PAt =STSO+C if ST>X] a. $589 b. $289 c. $2,969 d. $2,711 e. $11 9. What is the breakeven stock price at expiration for the transaction described in problem 8 ? a. $27.11 b. $30.00 c. $32.89 d. $29.89 e. cannot be determined 10. What is the maximum profit from the transaction described in Question 8 if the position is hold to explration? a. $3,289 b. $2.89 c. infinity d. $2,711 e. cannot be determined 11. What is the minimum profit from the transaction described in Question 8 if the position is held to expiration? a. $2,711 b. $3,289 c. $3,000 d. negative infinity e. cannot be determined