At time zero you enter a short position in futures contracts on 20 shares of the stock XYZ at the futures price of $50 00 Moreover, you sell (write) 5 exotic options of the following type they are put options, but using as the underlying asset the average of the today 's stock price and the stock price at maturity, rather than using the stock price at maturity as the underlying asset The option 's strike price is K $52 00, the option selling price today is $5 00 per option and the today 's stock price is S(0) $49 00 per share The maturity of all of your positions is T 2 months What is your total profit or loss two months from now if a At maturity the price of one stock share is $57 00 b At maturity the price of one stock share is $47 00

Question: At time zero you enter a short position in futures contracts on 20 shares of the stock XYZ at the futures price of $50.00. Moreover,

At time zero you enter a short position in futures contracts on 20 shares of the stock XYZ at the futures price of $50.00. Moreover, you sell (write) 5 "exotic" options of the following type: they are put options, but using as the underlying asset the average of the today's stock price and the stock price at rather than using the stock price at as the underlying asset. The option's is K = $52.00, the option selling price today is $5.00 per option and the today's stock price is S(0) = $49.00 per share. The of all of your positions is T = 2 months. What is your total profit or loss two months from now if
a. At the price of one stock share is $57.00?
b. At the price of one stock share is $47.00?

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