Question #$1$:

Let's assume that you expect the financial markets to go up next week.

How would you make money using options?

Please provide an example using your chosen stock. If your chosen stock

does not have options $($or too few$)$ please chose another company.Would you use a call or a put option?

$(7\mathrm{.}5$ points$)$ Would you buy or write the option?

$(7\mathrm{.}5$ points$)$ What would be your preferred strike price? Why?

$(7\mathrm{.}5$ points$)$ How much would it cost you?

$(7\mathrm{.}5$ points$)$ If the stock price doubles next week, how much profit

$($roughly$)$ would you expect to make?

Question #$2$:

Let's assume that you expect the financial markets to go down next week.

How would you make money using options?

Please provide an example using your chosen stock. If your chosen stock

does not have options $($or too few$)$ please chose another company.

$(7\mathrm{.}5$ points$)$ Would you use a call or a put option?

$(7\mathrm{.}5$ points$)$ Would you buy or write the option?

$(7\mathrm{.}5$ points$)$ What would be your preferred strike price? Why?

$(7\mathrm{.}5$ points$)$ How much would it cost you?

$(7\mathrm{.}5$ points$)$ If the stock price halves next week, how much profit

$($roughly$)$ would you expect to make?