An investor purchased 1 SPX put option with a strike of 1600. The investor wrote one SPX put option with the same maturity date and a strike of 1500. At maturity, what is your total payoff if the S&P 500 index is 1520?

You purchased 1 SPX call option with a strike of 1500. You wrote one SPX call option with the same maturity date and a strike of 1450. At maturity, what is your payoff if the S&P 500 is at 1475?

What is the call option premium given the following information?Stock price$ 50Call strike price$ 45Volatility (std dev)15%Time (years)0.25Risk-free rate2.00%Dividend yield0%

An increase in which two of the following will have a negative effect on the value of a put option?risk-free interest ratetime to option maturityunderlying stock priceoption strike price

A portfolio consists of the following securities. What is the portfolio weight of Stock C?StockNumber SharesPPSA200$48B150$33C350$21

Which one of the following options is in the money?

Which one of the following variables is NOT included in the Black-Scholes option pricing model?

What is the variance of the returns on a security given the following information?State of the EconomyProbability of State of EconomyRate of Return if State OccursBoom.0527%Normal.3015%Recession.65−22%

An investor owns shares of EZ stock. Which of the following strategies can the investor use to hedge the risk associated with a price decrease in EZ stock?buy call optionswrite call optionsbuy put optionswrite put options

A group of stocks and bonds held by an investor is called which one of the following?