Todays share price of Netflix is $270. You think Netflix's stock will rise over the next 3 months.

Today you observe the following option prices (all expiring in 3 months):

Option 1: Call Option Premium = $9. a Strike Price = $275

Option 2: Call Option Premium = $7. a Strike Price = $280

1. Which of these options is in-the-money today?

A) Both B) Neither C) Only Option 1

D) Only Option 2

2. Today you buy Option 1 and sell Option 2; (bull call spread). At expiration the stock price equals $279. What is your profit or loss (on a per share basis)? A) A loss of $5 B) A loss of $3

C) A profit of $2

D) A profit of $3

E) A profit of $5

3. Suppose you purchase Option 1 and also purchase Option 2. What is your breakeven stock price (on a per share basis) at expiration? A) $284 B) $285.50

C) $287.50

D) $291 E) $296