Question 7 Not yet answered Marked out of 1.00 P Flag question The current price of a stock is $77. A trader buys 1 put option contract on the stock with a strike price of $71. The trader paid a premium of $12 for the option. Which statement is true at the time of the option expiration? Select one: O A. The trader will make a profit by exercising the option when the stock price is below $50 OB. The trader will exercise the option if the price is above $71 OC. The trader will only exercise the option when the stock price is above $50 OD. The trader will only exercise the option when the stock price is below $50 O E. The trader will exercise the option if the price is above $83 Question 9 Not yet answered Marked out of 1.00 P Flag question Using the Black-Scholes formula find the price of a $50 strike price European call option expiring one year from today. The underlying stock current price is $45.22 and its return volatility is 21%. The continuously compounding risk-free rate is 2.57% Select one: O A. $1.98 O B. $2.42 O C. $3.27 O D. $2.67 O E. None of the options are correct