1. A stock currently trades at $110. June put options on the stock with a strike price of $115 are priced at $5.25. Calculate the dollar return on one put contract purchase.
2. Do the Math 3-4 Cash Flow Surplus/Deficit Cody Sebastian, of Lubbock, Texas, earns $61,000 a year. He pays 30 percent of his gross income in federal, state, and local taxes. He has fixed expenses in addition to taxes of $1,600 per month and variable expenses that average $1,300 per month. What is his net cash flow (surplus or deficit) for the year? Enter negative values with minus sign. Round your answer to the nearest dollar. $