= = You buy 25 put (premium = 2) and 75 call (premium = 3). What are your profits if the spot price = 50? If spot = 20 = 17% 17% 17% 17% 17% 17% A. You lost $5; You lost $5 B. You lost $5; You broke even C. You gained $25; You gained $5 D. You gained $20; You gained $55 E. You lost $3; You gained $50 F. None of the above A. B. C. D. E. F. You write two 50 Puts (p=3) and write one 50 Call (p=5). How much do you collect to start? What is the price range where you will make a profit? a -- 20% 20% 20% 20% 20% = A. Collect $8; range = $47 55 B. Collect $5; range = $45 - 53 C. Collect $11; range = $45 - 56 D. Collect $11; range = $44.5 - 61 E. Collect $3; range = $47 55 = = - - A R F You write two 50 Puts (p=3) and write one 50 Call (p=5). What are your profits if spot = $48? If spot $= $60? = = 20% 20% 20% 20% 20% = A. Profit = $9; Profit = $1 B. Profit = $7; Profit = $1 C. Profit = $11; Profit = $11 D. Profit = $9; Profit = $11 E. Profit = $7; Profit = $1 = = = = = A E = a Spot $25 and you buy a 20 Call (p=2) and sell a 30 Call (p=2). What are your profits if the spot goes to $40? A. -4 17% 17% 17% 17% 17% 17% B. O C. 4 D. 10 E. 20 F. 30 A.B.C.D.E.F. The spot price is $25 and puts (strike price = $30) are selling for $2.50. How could you use this arbitrage opportunity? A. There is no arbitrage possible B. Buy puts, buy the asset, and exercise the put for a profit of $5 C. Buy puts, buy the asset, and exercise the put for a profit of $2.50 D. Sell puts, buy the asset and earn profits = $2.50 E. None of the above 0% 0% 0% 0% 0% A. B. C. D. E. Selling a put is the same as buying a call and buying the asset (T/F)? Buying a call is the same as buying a put and selling the asset (T/F)? 25% 25% 25% 25% A. False; False B. True; True C. True; False D. False; True A.B.C.D