1. You forecast that CVS will increase above $80 per share by the end of the year. Write options on this forecast. Give details. What will need to happen (be specific) for you to keep the premium you received the day you wrote the option. Show all numeric work. Show numerically what will happen if your forecast is incorrect.

-Owner of the put has paid $3, so if sell for $100, total price would be $103. Probably would have closed the position a while ago as it went against the forecast. I keep the premium.