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Questions 4-6 are based on the information that follows: Shares of a stock trade at $45 per share. Call options with a strike price of

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Questions 4-6 are based on the information that follows: Shares of a stock trade at $45 per share. Call options with a strike price of $40 trade at $3.8 and put options with the same strike price trade at $0.30 per share. The options are all of one year duration. I own 7 million shares of the stock, 4. What would it cost for me to hedge my long stock position of 7 million shares, in millions of dollars? (a) $5.1 (b) $26.6 Id $17.4 Id) $2.1 le) none of the above. Shares of a stock trade at $45 per share. Call options with a strike price of $40 trade at $3.8 and put options with the same strike price trade at $0,30 per share. The options are all of one year duration I own 7 million shares of the stock. 5. Assume that at the end of the year the underlying stock trades at $60 per share. What is the value of my best position, including the cost of the option contracts in millions of dollars? (a) $4946 (b) $417.9 (c) $300,00 (d) $393.4 (e) $270.00 Shares of a stock trade at $45 per share. Call options with a strike price of $40 trade at $3.8 and put options with the same strike price trade at $0.30 per share. The options are all of one year duration. I own 7 million shares of the stock. 6. Suppose that the stock at the end of the year is $35. What is my best net position on this stock outcome? (a) $185.2 (b) $253.4 (c) $105.9 (d) $277.9 (e) $170.4

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