Q1 - Which of the following best describes the pay-off diagram depicted?

a)	Purchasing a put option

b)	Purchasing a call option

c)	Selling a call option

d)	Selling a put option

Q2 - What is the exercise price of the option?

Q3 - What is the purchase price of the option?

Q4 - What is the break-even point for the option?

Q5 - What is the profit or loss on the option if on the date of expiration, the underlying shares were selling at $9?

Q6 - What is the profit or loss on the option if on the date of expiration, the underlying shares were selling at $11?

Q7 - What is the profit or loss on the option if on the date of expiration, the underlying shares were selling at $25?

12 10 8 6 Profit or loss ($) 2 N 0 5 10 13 15 20 25 Share price at option expiration ($)