Question 41:

The answer is not 2 or 2.14. The answer should be a whole number.

Question 11:

Stock XYZ trades now for $75. You have the following information on different call and put options prices written on stock XYZ and expiring in 1 year: Strike Call Put $70 $10.76 $2.42 $80 $5.44 $6.22 Consider a strangle in which you purchase a put with strike $70 and purchase a call with strike $80. What is the profit/loss of the strategy if the stock price at maturity is $60? An American put option is always worth at least its intrinsic value because: 1. It only makes sense to exercise the contract if it is in-the-money. II. The time-value of an American put option is always non-negative. III. An American put is always worth more than a European put. Only I. is correct. Only II. is correct. Only III. is correct. Only I. and II. are correct. All L. II. and III. are correct