Question 25 (3 points) Amazon is currently selling for $47.29 a share. If you buy a Sept. put option with a strike price of 50, what would this entail? O 1) You have the obligation to sell 100 shares of Amazon at $47.29 per share on or before the expiration date in Sept. 2) You have the obligation to buy 100 shares of Amazon at $50.00 per share on or before the expiration date in Sept. 3) You have the option to buy 100 shares of Amazon at $47.29 per share on or before the expiration date in Sept. You have the option to sell 100 shares of Amazon at $50.00 per share on or before the expiration date in Sept. 4) Question 26 (3 points) What is a covered call? 1) You buy a call option 2) You short sale the underlying stock and buy a call option on that stock 3) You buy or already own the underlying stock and write a call option. 4) You buy or already own the underlying stock and buy a call option on that stock 5) You write a call option Question 27 (3 points) Use the following table for the next question Futures Table Gold/CMX)-100 troy oz: $ per troy oz. LIFETIME OPEN OPEN HIGH LOW SETTLECHGHIGH LOW INT Oct. 374.40 374.80 369.80 373.06 - 1.0 386.00 310.00 15.115 If you go long the Oct. Gold futures contract at the settle price, what does this entail? 1) You have the option to buy 100 oz. of gold at $373.06 an oz. 2) You have the option to sell 100 oz. of gold at $373.06 an oz. 3) You have the obligation to buy 100 oz of gold at $373.06 an oz. 4) You have the obligation to sell 100 oz. of gold at $373.06 an oz. Question 28 (3 points) One U.S. dollar buys 1.1826 CAD, thus one Canadian dollar will buy how many U.S. dollars? 1) 0.85 O2) 1.18 3) 1.74 O4 0.57