1. ABC stock currently sells for $88.30 per share. You are concerned the stock price pay decrease. Therefore you decided to purchase a Market Linked GIC where the underlying asset was ABC stock. The MLGIC costs $88.30. The participation rate is 100%. The MLGIC has a cap of 15.50%. At expiry the stock price is $73.65. What is the payoff on your MLGIC?

 

2. ABC stock currently sells for $106.83 per share. You are concerned the stock price pay decrease. Therefore you have decided to a protective put. You purchase a put option of ABC with an exercise price of $102.27. The put cost $2.23. At expiry the stock price is $93.86. What is the payoff per share on your protective put strategy?

 

3. ABC stock currently sells for $49.75 per share. You are concerned the stock price pay decrease. Therefore you decided to purchase a Market Linked GIC where the underlying asset was ABC stock. The MLGIC costs $49.75. The participation rate has a participation rate of 55.9%. At expiry the stock price is $41.35. What is the profit per share on your MLGIC?

 

4. ABC stock currently sells for $89.05 per share. You are concerned the stock price pay decrease. Therefore you decided to purchase a Market Linked GIC where the underlying asset was ABC stock. The MLGIC costs $89.05. The participation rate has a participation rate of 41.10%. At expiry the stock price is $125.75. What is the profit per share on your MLGIC?

 

5. You have decided to a covered call. You purchase a share of ABC stock. The stock costs $83.27 per share. You sell a call option on ABC stock. The call has an exercise price of $90.23. You are paid $6.07 for the call option that you sold. At expiry the stock price was $98.21. What is the payoff of your covered call strategy.

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