Question 2 Investor A bought, at time 0, a European call option with strike 110 and realizes a payoff of 20 at T = 1 year. The underlying asset is corn. Investor B bought, at time 0, a put option with strike 135 with the same maturity.

Whats Investor Bs payoff at T = 1 ?

Investor B pays 6 for this option at t = 0. The annual compound

interest rate is r = 0.02. Whats investor Bs profit (i.e. accumulated

cashflow) at the maturity ?

Investor C bought a call bull spread (i.e. purchase of a call option with

strike 90, sale of a call option with strike 100. What is the payoff of

Investor C at t = 1 ?

Investor D has a short forward position with strike 100. What is the

payoff of Investor D at t = 1? What is the profit of D at maturity?