Question $4$

Which of the following are always positively related to the price of a European call option on a stock $($circle three$)$

NOTE: "All or Nothing" Scoring

Question options:

The stock price

The strike price

The time to expiration

The volatility

The risk$-$free rate

The magnitude of dividends anticipated during the life of the option

Question $8$

Six$-$month call options with strike prices of $$35$ and $$40$ cost $$6$ and $$4,$ respectively. What is the maximum potential gain when a bear spread is created from the calls?

Question options:

$$2\mathrm{.}00$

$$2\mathrm{.}50$

$$3\mathrm{.}00$

None of the above

Question $11$

Six$-$month call options with strike prices of $$35$ and $$40$ cost $$6$ and $$4,$ respectively. What is the maximum potential loss when a bear spread is created from the calls?

Question options:

$$2\mathrm{.}00$

$$2\mathrm{.}50$

$$3\mathrm{.}00$

None of the above