An investor purchased 1 SPX put option with a strike of 1600. The investor wrote one SPX put option with the same maturity date and a strike of 1500. At maturity, what is your total payoff if the S&P 500 index is 1520?

What is the variance of the returns on a security given the following information?State of the EconomyProbability of State of EconomyRate of Return if State OccursBoom.0527%Normal.3015%Recession.65−22%

Which one of the following statements concerning option prices is correct?

You purchased 1 SPX call option with a strike of 1500. You wrote one SPX call option with the same maturity date and a strike of 1450. At maturity, what is your payoff if the S&P 500 is at 1475?

You have an equity portfolio valued at $1.22 million that has a beta of .98. You have decided to hedge this portfolio using SPX call option contracts. The S&P 500 index is currently 3,092. The option delta is 0.639. How many option contracts must you write to effectively hedge your portfolio?

Which one of the following statements is correct concerning the Black-Scholes option pricing model?

Suppose you purchase seven call contracts on Macron Technology stock. The strike price is $75, and the premium is $4.40. If, at expiration, the stock is selling for $83 per share, What is your net profit? (Do not include the $ sign)

Which one of the following is the lower price bound for the intrinsic value of an American put option on a stock?

What is the value of a call option if the underlying stock price is $96, the strike price is $90, the underlying stock volatility is 36 percent, and the risk-free rate is 6 percent? Assume the option has 122 days to expiration. Note: Use 365 days in a year. Do not round intermediate calculations. Round your answer to 2 decimal places. Do not include the % sign.

You have a portfolio which is comprised of 55% of Stock A and 45% of Stock B. What is the expected return on this portfolio?State of the EconomyProbability Weight 55%45%Boom.1519%12%Normal.6511%7%Recession.20−16%1%