Q1: suppose you purchase one european xyz put contract with an exercise price and primium of $57, and $3 respectively. at the same time you also write one european xyz put contract with an excercise price of $50 and a premium of $1. if both contracts expire on the same day what is your portfolio profit if both options are excercised?

a. -200 b. 500 c. -500 d. 200 e. cannot be determined

Q2: if a call option isnt excercised on or before the expiration date, the option writer will have a positive rate of return from the contract.

true or false

Q3: the time premium of a call option prior to expiry is?

a. 0 b. call premium minus the intrinsic value pf the call c. the intrinsic value of the call d. none of the above