You bought 1500 shares of ABC stock at $75/share, which you plan to sell in 9 months. You decide to use 9-month European put options to fully hedge your long position in the stock. The options carry an exercise price and premium of $72 and $.50, respectively. What is the your profit/loss from your entire position (stocks and puts) if ABC trades for $70 when you close out your position?

You bought two european calls on DEF stock with an exercise price and premium of $35 and $1.60, respectively. At the same time, you wrote two european calls on DEF with an exercise price and premium of $37 and $1.20, respectively. If both contracts expire on the same day, what is your portfolio's profit if both options are exercised? An investment banker believes that FGH stock (which currently trades at $55/share) will appreciate over the next 6 months. The banker decides to use ten 6-month european call options to speculate. FGH call options have a strike price of $62 and a call premium of $3.25. Assume FGH shares sell for $65 at expiration. Find the bankers profit/loss.