Portfolio 2: Purchase a call option with a strike price of 80 for 8.4 and a call option with a strike price of 100 for 1.9 and sell two call options with a strike price of 90 for 4.2 each. This portfolio makes money for a range of stock prices.

If you purchase portfolio 2 and the stock price at the end of the year is 90, what is your rate of return?

If you purchase portfolio 2 and the stock price at the end of the year is 103.40, what is your rate of return?

If the stock price rises from 80 to 81, how much does the option price change in dollars terms? Assume that the strike price of the option is 100, the option has one year to maturity, the risk-free rate is 8 percent, the dividend yield is 4 percent, and the annual volatility is 30 percent.

If the stock price rises from 80 to 81, by what proportion does the call option price change? For example, if the option price rises from 10 to 11 this is an increase of $1.00 and a proportional increase of 0.10. ([11-10]/10-1)?

Option pricing: high stock price ($): If the stock price rises from 120 to 121, how much does the option price change in dollars terms? Continue to assume that the strike price of the option is 100, the option has one year to maturity, the risk-free rate is 8 percent, the dividend yield is 4 percent, and the annual volatility is 30 percent.

If the stock price rises from 120 to 121, by what proportion does the call option price change? Continue to assume that the strike price of the option is 100, the option has one year to maturity, the risk-free rate is 8 percent, the dividend yield is 4 percent, and the annual volatility is 30 percent.