Option D (buy 1.5m put)

Question 1 – Option D (buy 1.5m put options)
Question 2- $ 16,67
Question 3 - is the second derivative of the option premium with respect to the underlying’
price.
Question 4 – 337 + shares, -421 call 2 options
Question 5- Loss of $ 5.84. Hence answer is -5.84 (Please do not forget the minus sign)
Question 6 – Factor is 0.3247
Question 7- Risk neutral factor 0.95, Sdu is 294, European call option is $ 7.23, American
call option is $ 8.35
Question 8- $ 370
Question 9 - $14.20
Question 10 - Parties bear credit risk
Question 11 – 21
Question 12- Option B (-$100)
Question 13- SPX1+LCX2
Question 14- -Max(X-ST,0)+P (Option D)
Question 15- 3.717%
Question 16 – Answer is (minus)
Question 17- LC with X=125 + SC with X=135
Question 18 – Answer is 300, 2-June
Question 19 - $21.2
Question 20 - An American put cannot be trading for more than the present value of its strike
price
Question 21- Fall, Rise
Question 22- Buy stock, borrow PV(X), write call