For each option strategy listed below explain how the


1. Find the future value at the end of year 3 of the following stream of cash flows received at the end of each? year, assuming the firm can earn 17 percent on its investments. Year 1 $3000 Year 2 $6000 YEar 3 $9000

A, 23350 B, 23,550 C, 20724 D, 20,127

2. For each option strategy listed below, explain how the strategy is put together and why an investor might use it.

(a) Covered call

(b) Bull spread

(c) Bear spread

(d) Long straddle

(e) Long strangle

(f) Butterfly spread

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Financial Management: For each option strategy listed below explain how the
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