1. If the current stock price is $50, the intrinsic value of a put option with an exercise price of 40 is

-10

0

10

40

none of the above

2. Which of the following call options (X is the exercise price and T is time to maturity)has the highest value (all options are on the same underlying stock)?

X=150; T=.5

X=150; T=.25

X=120; T=.25

X=120; T=.5

We can’t tell without further information

3. Which of the following put options (X is the exercise price and T is time to maturity) has the highest value (all options are on the same underlying stock)?

X=150; T=.5

X=150; T=.25

X=120; T=.25

X=120; T=.5

We can’t tell without further information.

4. Suppose you own the 600 March put and have sold the 600 March call, both options on the same underlying stock. If the stock price at the expiration date = 580, what is your payoff?

-20

0

20

600

none of the above

5. The spot price of rhodium is $1000 per ounce. The one-year riskless rate is 0.18%. What is the one-year futures price of rhodium assuming there is no additional cost or benefit of holding this commodity?

$998.20

$1,000

$1001.8

none of the above