Please provide letter answer and explanation:

1. A call option is currently trading for $14.85 with an exercise price of $100. The stock price is currently $101. The trader who is long this call option has the right to buy the stock at

a. $14.85

b. $101

c. $100

d. $85.15

2. What is the lowest possible value of a non-dividend paying American-style call assuming markets are in equilibrium?

a. max[0, S₀ PV(X)]

b. S₀

c. max(0, S₀ X)

d. max[0, PV(S₀) X]

3. Which of the following is the lowest possible value of an American-style put on a stock with no dividends assuming markets are in equilibrium?

a. PV(X)

b. X

c. Max[0, PV(X) S₀]

d. Max(0, X S₀)

4. In the single period binomial model, if a put option will expire in-the-money for both the up and down move, the hedge ratio will be

a. 0.5

b. infinite

c. 1.0

d. 1.0