1. The potential loss for a writer of a call option on a stock is:
   1. unlimited
   2. limited to the call premium
   3. limited to the initial price of the stock
   4. limited to the initial margin deposit
   5. none of the above

2. An at-the-money put option with on a stock with six months to maturity is currently selling for $5. What is the price of a call with the same strike and time to maturity? The stock price is $40 and the risk free rate is 10%.
   1. $3.14
   2. $5.00
   3. $6.74
   4. $6.86
   5. $8.64