Question: Please check if I answer correctly: uestion 24 (5 points) Saved You buy one Huge-Packing August European call contract and one Huge Packing August European

Please check if I answer correctly:

Please check if I answer correctly: uestion 24 (5Please check if I answer correctly: uestion 24 (5Please check if I answer correctly: uestion 24 (5
uestion 24 (5 points) Saved You buy one Huge-Packing August European call contract and one Huge Packing August European put contract. Both options are "at the money" and are on 100 shares of Huge-Packing stock each. The call premium is $1.25, and the put premium is $4.50. The current price of the Huge- Packing stock is $50 per share. Disregarding time value of money considerations, at expiration, your highest potential loss from this position is unlimited $275 $450 $125 O $575Question 25 (8 points) Saved You are cautiously bullish on the common stock of the Wildwood Corporation over the next several months. The current price of the stock is $50 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: Wildwood Corporation Underlying Stock price: $ 50.00 Expiration Strike Call June $ 45.00 $ 8.50 June $ 50.00 $ 4.50 June $ 55.00 $ 2.00 To establish a bull spread to profit from your bullish outlook, you would buy the 45 call and sell the 55 call sell the 45 call and sell the 55 call buy the 45 call, sell two 50 calls and buy the 55 call buy the 45 call and buy the 55 call buy the 55 call and sell the 45 calluestion 26 (7 points) You would like to hold a protective put position on the stock of Avalon Corporation to lock in a guaranteed minimum value of $50 at year-end. Avalon currently sells for $50. The T-bill rate is 5%. Unfortunately, no European put options are traded on Avalon Company, but you found out that European call options with the strike price of $50 and one year to expiration are currently priced at $4. What would have been the cost of a protective put portfolio? $50 $48.44 $46 $51.56 $54

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