Question: They all ask the same questions so please answer all. Show your work please and thank you. Question 5 0 out of 15 points You

They all ask the same questions so please answer all. Show your work please and thank you.

They all ask the same questions so please answer all. Show your

Question 5 0 out of 15 points You form a collar by buying a put with an exercise price of X1 = $49 and a premium of P = $4, and selling a call with an exercise price of X2 = $100 and a premium of C = $6. Both options mature in 6 months, and both have the same underlying asset. In addition, you buy the underlying asset for its current spot price of S = $67. Find the profit of this collar at expiration if the ending price of the underlying asset is ST = $18. Do NOT use the $ symbol in your answer; just write a numerical value. Of course, include the negative sign if the answer is negative; but do not include the positive sign if the answer is positive. Selected Answer: -49 Correct Answer: -16 Question 6 O out of 15 points You form a collar by buying a put with an exercise price of X1 = $24 and a premium of P = $3, and selling a call with an exercise price of X2 = $107 and a premium of C = $4. Both options mature in 3 months, and both have the same underlying asset. In addition, you buy the underlying asset for its current spot price of S = $60. Find the profit of this collar at expiration if the ending price of the underlying asset is ST = $70. Do NOT use the $ symbol in your answer; just write a numerical value. Of course, include the negative sign if the answer is negative; but do not include the positive sign if the answer is positive. Selected Answer: -35 Correct Answer: 11 Question 7 O out of 14 points You form a collar by buying a put with an exercise price of X1 = $35 and a premium of P = $3, and selling a call with an exercise price of X2 = $103 and a premium of C = $5. Both options mature in 8 months, and both have the same underlying asset. In addition, you buy the underlying asset for its current spot price of S = $61. Find the profit of this collar at expiration if the ending price of the underlying asset is ST = $133. Do NOT use the $ symbol in your answer; just write a numerical value. Of course, include the negative sign if the answer is negative; but do not include the positive sign if the answer is positive. Selected Answer: -28 Correct Answer: 44

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