Use the information in the following table to answer questions A and B. (Assume options can be exercised prior to expiry date).

December, 2017, Sydney Ltd

Last share (sale) price = $31.00

Strike PriceJunJulyAugust_

Call Options_

$35.00$1$2 $2.5

Put Options_

$26.00$1.20$3.5$2

Required:

A. Suppose you buy 400 Jun $35.00 call contracts. How much will you pay, ignoring commissions? Assume Sydney share price is $41 any day prior to expiry date, then what is your net gain.

B.Suppose you buy 20 July put contracts. What is your maximum net gain? On the expiration date, Sydney Share is selling for $16.00 per share. What is your options worth?