- You bought a call option at strike $ 60 for a price of $ 6 and sold a put option at strike $ 70 for a price of $2.5, both options with the same maturity. The underlying stock currently trade for $61. Your breakeven point is?

A. 64.50

B. 63.50

C. 61.00

D. 66.50

- Consider a two-period binomial model with S = 100, u = 1.10, d = 0.90, R = 1.02. Suppose also that a dividend of $4 is expected after one period. What is the early-exercise premium of a two-period American call option with a strike price of K = 100?

A. $ 3.12

B. $ 2.12

C. $ 0.14

D. $ 0.00