QUESTION 12 Use the following to answer the next three questions. Smith Inc. stock currently trades for $100. Nine-month European put options on the stock carry strike price and premium of $95 and $.50, respectively. The annual risk free rate is 2%. You want to create a portfolio that mirrors the payoff of writing a 9-month European call on Smith stock with an exercise price of $95. Which of the following steps must you do in order to achieve this payoff? Sell one put option and receive $50. Purchase 100 shares and pay $10,000. Short the present value of exercise price and receive $9358.56. None of the above QUESTION 13 What is the upfront cash inflow or outflow associated with the portfolio you need to establish a short call position on the stock? an outflow of $19,408,56 an inflow of $19,408.56 an outflow of $691.44 QUESTION 14 Find your profit/loss from your portfolio if Smith stock trades for $90 at the end of nine months. Round intermediate steps to four decimals and your final answer to two decimals. Do not use currency symbols or words when entering your response