1. What would be your percent return had you purchased a single contract at the call premium when the SPY price was $445.91 and sold at the expected call premium if the underlying SPY price increased to $500 (do not round the forecasted premium)?

[Enter the final answer in as a percent (e.g., 5.55%=5.55) - not a decimal and put a negative sign if appropriate]

2. What would be the expected premium of the call option if the underlying stock price for SPY decreased to $400 per share (Hint: adjust the input S in your B-S model)?

3. What would be your dollar return had you purchased a single contract at the call premium when the SPY price was $445.91 and sold at the expected call premium if the underlying SPY price decreased to $400 (do not round the forecasted premium)?

[Round the answer to the nearest cent and put a negative sign if appropriate]

4. What would be your percent return had you purchased a single contract at the call premium when the SPY price was $445.91 and sold at the expected call premium if the underlying SPY price decreased to $400 (do not round the forecasted premium)?

[Enter the final answer in as a percent (e.g., 5.55%=5.55) - not a decimal and put a negative sign if appropriate]

Use the following call option quote for the SPDR S\&P 500 ETF Trust (SPY) security to answer the questions in this assignment. Assume the following: - The current price for SPY is $445.91. - The risk-free rate is 3.5% per annum. - The implied volatility for this option is 12.01% per annum