Question 1 Drop down answers	15%	10%	20%	100%
Question 2 Drop down answers	1500	1100	1000	1200
Question 3 Drop down answers	1	10	100	0
Question 4 Drop down answers	110	100	80	90
Question 5 Drop down answers	-10	10	1,100	0

Lindsey Life Insurance Company has an equity indexed annuity called LLIC 12 -0. For an investment of $1,000 - the investor is guaranteed the following: 1. If S&P500 returns are positive for a given year, the investor's account will be credited the return with a cap of 12% at the end of the year 2. If S&P 500 returns are negative for a given year, the investor's account will still be credited 0% at the end of the year Danielle decides to invest $1,000 with LLIC on 01/01/2020 when the S&P500 is also trading at $1,000. In order to manage the risk of the annuity, LLIC decides to: 1. Invest Danielle's $1,000 in safe risk free US Government Securities maturing in one year with a interest rate of 1% 2. Buy a Call option from your professor (who has a very bad Credit Score of 500) with a strike price of $1,000. Assume the premium for the call option is $10 Scenario 1: In one year S&P500 finishes at a value of $1,100