1. You wrote 7 call option contracts on XYZ stock with a strike price of $40 and an option premium of $2.25. What is your net gain or loss on this investment if the price of XYZ is $36.28 on the option expiration date?(Round answer to 2 decimal places. Do not round intermediate calculations).
2. Three months ago, you purchased a put option on Nole stock with a strike price of $60 and an option price of $0.87. The option expires today when the value of Nole stock is $61.46 Ignoring trading costs and taxes, what is your total profit or loss on your investment?(Round answer to 2 decimal places. Do not round intermediate calculations).
3. An investor purchases a long call at a price of $3.04. The strike price is $29. If the current stock price is $28.16, what is the break-even price for the investor?(Round answer to 2 decimal places. Do not round intermediate calculations)
4. The price of Ervin Corp. stock will either be $65 or $87 at the end of the year. Call options are available with one year until expiration.Continuously compoundedT-bills currently yield 3.74 %. Suppose the current price of Ervin stock is $73.

What is the value of the call option, using therisk-free approach, if the strike price is $75 per share? (Round answer to 2 decimal places. Do not round intermediate calculations).