1. Ten put option contracts are written with a strike price of $95 and an option premium of $3.87. If the stock price at expiration is $88.16, what is the profit from this transaction?
a. $710
b. $3870
c. $2430
d. $-3160
e. $-2970
2. A call option is priced at $4.31 and has a strike price of $75. What is the breakeven stock price at the expiration date?
a. $75.00
b. $79.31
c. $78.32
d. $70.69
e. $82.63