Question: Workshop 1 1.1. Explain carefully the difference between selling a call option and buying a put option. 1.2. An investor enters into a short forward

Workshop 1 1.1. Explain carefully the difference between selling a call option and buying a put option. 1.2. An investor enters into a short forward contract to sell 100,000 British pounds for U.S. dollars at an exchange rate of 1.3000 USD per pound. How much does the investor gain or lose if the exchange rate at the end of the contract is (a) 1.2900 and (b) 1.3200? 1.5. You would like to speculate on a rise in the price of a certain stock. The current stock price is $29 and a 3-month call with a strike price of $30 costs $2.90. You have $5,800 to invest. Identify two alternative investment strategies, one in the stock and the other in an option on the stock. What are the potential gains and losses from each

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