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QUESTION 7 Suppose you are given the following information stock price - 35, strike price = 33, u = 1.466,0 -0.756, n. 2 time steps).

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QUESTION 7 Suppose you are given the following information stock price - 35, strike price = 33, u = 1.466,0 -0.756, n. 2 time steps). 4.00% per period), and pays $2 dividend at the end of the first period. Compared with the early exercise premium you calculated for the previous question, the early exercise premium is higher O lower the same O cannot be determined OO QUESTIONS 10 pc Suppose you are given the following information stock price - 30,- 1.266, 0.756, n = 2 time steps). 3.00% per period), and pays no dividend. Suppose you short a call option with a strike of $35 and short a put option with a stirke price of $25. How much premium you pay or collect, assuming both options are European options. collect $5.14 pay $5.14 collect $3.14 pay $3.14 QUESTION 7 Suppose you are given the following information stock price - 35, strike price = 33, u = 1.466,0 -0.756, n. 2 time steps). 4.00% per period), and pays $2 dividend at the end of the first period. Compared with the early exercise premium you calculated for the previous question, the early exercise premium is higher O lower the same O cannot be determined OO QUESTIONS 10 pc Suppose you are given the following information stock price - 30,- 1.266, 0.756, n = 2 time steps). 3.00% per period), and pays no dividend. Suppose you short a call option with a strike of $35 and short a put option with a stirke price of $25. How much premium you pay or collect, assuming both options are European options. collect $5.14 pay $5.14 collect $3.14 pay $3.14

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