Question 13 (3.8 points) An investor shorts (short sells) a share of Pandora Company stock at $85 per share. He would like to insure his loss against the increase in the stock price by using option contracts available in the option market. What is his possible strategy? Buy a put option at Pandora Comapny stock with the exercise price of $85 per share. Sell a forward contract at Pandora Comapny stock with the forward price of $85 per share. Buy a call option at Pandora Company stock with the exercise price of $85 per share. Question 14 (3.7 points) The premium on a long term put option on the market index with an exercise price of $885 is $15.00 when originally purchased. After 6 months the position is closed, and the index spot price is $852. If interest rates are 0.5% per month, what is the Put Payoff for a short position? 0-$18 +$33 -$33