Q10: DFW common stock currently trades for $80/share. You expect DFW could move by 15% in either direction over the next six months. The annual risk free rate is 1%. Find the value of a six month European call on DFW stock with an exercise price of $88. Round intermediate steps to four decimals and your final answer to two decimals. Do not enter a dollar sign when inputting your answer.

2.06 (fill in the blank question)

Q11: Based on the information in the previous question, an investor that owns 1000 shares of DFW can create a portfolio with no price risk by writing 60 call options. True False

Q12: Find the risk-free dollar return that could be earned by someone who combined 1000 shares of DFW stock and wrote the appropriate number of call options on the stock. Do not use the dollar sign when entering your response. Round intermediate steps to four decimals and your final answer to the nearest dollar. _______ (fill in the blank)