14. You would like to hold a protective put position on the stock of Ximera Corp to lock in a guaranteed minimum value of $50 at year-end. Ximera currently sells for $50. Over the next year, Ximera's stock price will increase by 10% or decrease by 10%. The T-bill rate is 5%. Unfortunately, no put options are traded on Ximera Corp. Suppose the desired put options with X = 50 were traded. What would be the hedge ratio for the option?

Multiple Choice

A 1

B 0.5

C 1

D 0.5

16. You are cautiously bullish on the common stock of EXTREME INC over the next several months. The current price of the stock is $59 per share. You want to establish a bullish money spread to help limit the cost of your option position. You find the following option quotes:

EXTREME INC Underlying Stock price: $59.00
Expiration	Strike	Call	Put
June	54.00	9.40	2.45
June	59.00	4.95	3.90
June	64.00	2.45	8.40

Suppose you establish a bullish money spread with the puts. In June the stock's price turns out to be $62. Ignoring commissions, the net profit on your position is _______________.

Multiple Choice

A $395

B $300

C $536

D $836