Question 13 4 out of 7 points Use the following information to answer questions 10-13 Exp. Call Vol. Last Last 0.35 Southwestern Strike Airlines LUV 15.00 16.20 15.00 16.20 17.50 16.20 17.50 16.20 17.50 16.20 20.00 16.20 20.00 Oct. Nov. Oct. Nov. Feb. Oct. Nov. 491 259 680 142 51 828 2.16 2.80 0.75 1.23 1.85 0.20 0.45 Put Vol. 559 154 522 40 28 915 212 1.10 1.70 2.41 3.87 4.15 4.77 123 Suppose you bought 10 Southwest Airlines Oct 20 put contracts today. Just before the option expires, the stock is selling for S19. What is your net profit (or loss.)? Ignore transaction costs. Selected Answer: E) $4,150 Correct Answer: B) $3,150 Question 14 3 out of 7 points Stockbrokers often buy wine and champagne to celebrate their success. Thus, wine stocks are often closely related to the movement of the market as a whole. Suppose that Vintage Wines (VINW) has estimated the following stock returns for different states of the economy in the coming year: State of the economy Probability Return Expansion 0.10 0.15 Good 0.50 0.10 Poor 0.35 0.00 Recession 0.05 -0.12 What is the Standard Deviation for VINW for the coming year? Selected Answer: C. 25.65 Percent Correct Answer: A. 6.70 Percent