Suppose that on May 29, 2020, you long an-at-the-money CALL option on stock A with an expiration date of 6/30/20.

1. Do you exercise the option at expiration?

2. What is your payoff at expiration?

3. Draw a picture of the payoff diagram.

Suppose that on May 29, 2020, you long an-at-the-money PUT option on stock A with an expiration date of 6/30/20.

4. Do you exercise the option at expiration?

5. What is your payoff at expiration?

6. Draw a picture of the payoff diagram.

Suppose that on May 29, 2020, you long an-at-the-money STRAP on stock C with an expiration date of 6/30/20.

7. Do you exercise the option at expiration?

8. What is your payoff at expiration?

9. Draw a picture of the payoff diagram.

PRICES

	STOCK A	STOCK B	STOCK C
4/30/2020	$17	$19	$30
5/29/2020	$18	$14	$26
6/30/2020	$20	$16	$28