1. Calculate the payoff at expiration for a put holder on an option on a Eurodollar future, where the underlying IMM index value at expiration using the IMM quotation on a 90-day dollar denominated time deposit on a $1,000,000 notional principal is 98.64 and the “exercise price” (also as an IMM index value) is 98.80

$0

$250

$300

$350

$400

2. What is the time value (speculative premium) at the time of purchase (t = 0) to the holder of a call with strike price $120 if the underlying asset is $100 and the call premium is $10?

$0

$5

$10

$15

$20