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Supposea stock is trading at$84.11.A market participantbuys 14put optioncontracts(where1contractisfor100shares)onthe stock with a strike price of$92.14when the option price is$14.98per share.The options are exercised when the

  1. Supposea stock is trading at$84.11.A market participantbuys 14put optioncontracts(where1contractisfor100shares)onthe stock with a strike price of$92.14when the option price is$14.98per share.The options are exercised when the stock price is __________, and themarket participantbreaks even (no profit,no loss).What is the stock price at the time the options areexercised?
  2. Supposea stock is trading at$80.11.A market participantbuys 3call optioncontracts(where1contractisfor100shares)onthe stock with a strike price of$87.14when the option price is$9.98per share.The options are exercised when the stock price is __________, and themarket participantbreaks even (no profit,no loss).What is the stock price at the time the options areexercised?
  3. Suppose a market participanthas one October futures put option on wheat with a strike price of 700 cents per bushel. One futures contract is on 5,000 bushels of wheat. Suppose that the current futures price of wheat for October delivery is 677 cents, and the most recent settlement price is 675 cents. How much is thenet payoff from exercise?
  4. Suppose a stock is trading at$47.11. A market participant writes8 put option contracts (where 1 contract is for 100shares)on the stock with a strike price of $50.14when the option price is $3.98per share. The options are exercised when the stock price is $49.06. What is the market participant's net profit or loss?(A loss should be entered as a negative number.)
  5. Suppose a stock is trading at$57.11. A market participant writes 9 call option contracts (where 1 contract is for 100shares)on the stock with a strike price of $61.14when the option price is $4.98 per share. Over time, the stock price monotonically decreases to$42.06. What is the market participant's net profit or loss?(A loss should be entered as a negative number.)

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