The profit of a portfolio containing options is determined by the following relationship. The settlement date is six months for all options and the continuously compounded interest rate is 4%. The strike price for all options is identical.

1a) the options expire in ____ months.

a) 3

b) 4

c) 6

d) 9

e) 12

1b) the maximum profit is:

a) 0

b) 25

c) 125

d) Positive infinity

1c) determine the profit when price = 0

a) 0

b) -75

c) 75

d) -125

e) 125

Profit =(ST)={ST75125STST100 Profit =(ST)={ST75125STST100