1. Merrimack stock is selling for $53 a share, the $50 puts are priced at $1.10, and the $50 calls are priced at $3.76. How much will you receive if you write fifteen $50 call option contracts?
$5,640.00
$6,788.00
$4,240.00
$1,960.00
$8,750.00
2. The market price of Andover stock has been very volatile and you think this volatility will continue for a few weeks. Thus, you decide to purchase a 1-month call option contract with a strike price of $40 and an option price of $1.08. You also purchase a 1-month put option contract on the stock with a strike price of $40 and an option price of $.35. What will be your total profit or loss on all the transactions related to these option positions if the stock price is $37.40 on the day the options expire?
$92
-$92.00
-$130.00
$108
$117