Stock A is currently trading at $50. The risk free rate is 0.005 annually. The volatility is 0.27 annually. Consider a 3 month European call option with strike price of $50?				Use Black-Scholes to price the call option.
				The price of a 6 month option would be MORE or LESS than the one above?
Suppose you bought a protective put on Stock A. Ignore what you calculated above and pretend that option cost $4.				If Stock A rises to $53 when the option expires, what was your profit from the protective put?
				If Stock A falls to $37 when the option expires what was your profit from the protective put?