1. Gail is in the same position as Amber, i.e., she has made a lot of money for her clients being long AAPL at the right price. She feels the same way as Amber regarding the direction of the stock and hence wouldnt mind selling the stock at a price slightly higher than its current price. Amber should

a. write (sell) covered calls.

b. write (sell) naked calls.

c. buy puts.

d. buy calls.

e. more than one, but not all, of the above

2. Amber has made lot of money for her hedge fund clients by being long AAPL at the right price. She is getting the notion that AAPL has gotten a little too expensive but doesnt want to sell the stock because she loves the stock for the long run, trading isnt free and, at her cost basis, the tax consequences could be dire. In order to protect herself, Amber could

a. write (sell) covered calls.

b. write (sell) naked calls.

c. buy puts.

d. buy calls.

e. more than one, but not all, of the above.

3.Tristin currently does not own AAPL but would like to buy some at a lower price. He could conceivably buy the stock at his price and make a few dollars for his trouble by

a. selling naked puts at a strike price lower than the current price.

b. selling covered puts at a strike price lower than the current price.

c. selling covered calls at a strike price lower than the current price.

d. buying naked calls at a strike price higher than the current market price.

e. selling put options on Samsung.