Question 1 (3.7 points) Which of the following is TRUE? A put option becomes more profitable when the underlying asset appreciates in value. The following figure depicts payoff diagram for the buyer of a call option. The following figure depicts payoff diagram for the seller of a call option. Question 2 (3.7 points) The spot price of the market index is $1010. After 6 months the market index is priced at $1030. The annual rate of interest on treasuries is 4.8% (0.4% per month). The premium on the long put, with an exercise price of $1060, is $25.00. Calculate the profit or loss to the short put position if the final index price is $1030. $25.61 gain $25.61 loss $4,39 loss 54.39 gain