You just purchased 1600 shares of Davis stock at $40/share, which you plan to hold for nine months. Nine month European call options on the stock have an exercise price and premium of $45 and $1.55, respectively. Nine month European put options are also available with a strike price and premium of $40 and $2.10, respectively.

Assuming that you created a covered call position to fully hedge your position in the stock, find your total profit/loss (stock and options) if Davis trades for $46 when the options expire. Do not use currency symbols or words when entering your response.

Assuming that you created a protective put position to fully hedge your position in the stock, find your total profit/loss (stock and options) if Davis trades for $46 when the options expire.

		-6240
		3360
		6240
		12960
		None of the above

Assuming that you didn't choose to hedge your position in the stock, find your profit/loss if Davis trades for $46 in nine months. Do not use currency symbols or words when entering your response.