Question 3 This example is part of "Hedged Portfolios" to minimize risk. Assume you have $9000 to invest; A stock is trading at $90.00. A call option that expires in one year with a strike price of $90.00 is trading at $10.00. What is your portfolio's 1-year return if you invest in "Only Options" and the the stock price after one year is $48.00? Enter your answer in the following format: + or - 0.1234

Hint1: Answer is between -0.92 and -1.09 Hint2: +100% is same as 1, +50% is same as 0.5, -50% is same as -0.5, and -90% is same as -0.9

Question 4

Suppose WMT (Walmart Inc.) Stock and Options information today is provided below. Stock price is trading today at $139.16. A Put option that expires in one year at an exercize price of $150 is trading at $18.00. One year risk-free interest rate is 0.87%.

What is the value of one-year Call today at the same exercise price as the Put, based on the Put-Call Parity? Enter your answer in the following format: 12.34 Hint: Answer is between 7.6 and 9.21