PROBLEM 1: LONG FUTURES CONTRACT. Brent Crude Oil is currently trading at $95 per barrel. Consider a futures contract with a futures price of $50 per barrel. At maturity, complete the following payoff and profit table from the perspective of the long futures position. When you are finished, plot the payoff and profit on a graph similar to the one I drew in the online lecture.

ST	Futures Payoff
$40
$45
$50
$55
$60

PROBLEM 2: SHORT FUTURES CONTRACT. Using the same scenario as in Problem 1, complete the following payoff and profit table from the perspective of the short futures position. When you are finished, plot the payoff and profit on a graph similar to the one I drew in the online lecture.

ST	Futures Payoff
$40
$45
$50
$55
$60

Notice that because futures prices has zero value at initiation, the payoff and profit are the same. Unlike the options example below, which will be the focus of a future module. So, do focus on the following option payoff other than to note that:

They are not symmetric, like futures

Payoffs and profits are different

PROBLEM 3: LONG CALL. ABC stock is currently trading at $50 per share. Consider a call option with a strike price of $45 per share and a premium of $3 per share. At expiration, complete the following payoff and profit table from the perspective of the long call position. When you are finished, plot the payoff and profit on a graph similar to the one I drew in the online lecture.

ST	Call Payoff	Call Profit
$40
$45
$50
$55
$60

PROBLEM 4: SHORT CALL. Using the same scenario as in Problem 3, complete the payoff and profit as well as the graph from the perspective of the short call position.

ST	Call Payoff	Call Profit
$40
$45
$50
$55
$60

PROBLEM 5: LONG PUT. XYZ stock is currently trading at $75 per share. Consider a put option with a strike price of $80 per share and a premium of $5 per share. At expiration, complete the following payoff and profit table from the perspective of the long put position. When you are finished, plot the payoff and profit on a graph similar to the one I drew in the online lecture.

ST	Put Payoff	Put Profit
$70
$75
$80
$85
$90

PROBLEM 6: SHORT PUT. Using the same scenario as in Problem 5, complete the payoff and profit table from the perspective of the short put position. When you are finished, plot the payoff and profit on a graph.

ST	Put Payoff	Put Profit
$70
$75
$80
$85
$90