need finance questions answered asap

Question 1

To create a butterfly spread, one needs to long 1 put with low K, short 1 put with middle K, and long 1 put with high K.

	True
	False

Question 21 pts

Mary speculates XYZ stock price will increase. Which action should she take now?

	Buy a put option with a high strike price and write a put with a low strike price.
	Buy a call and a put with the same strike price.

	Buy a call option with a low strike price and write a call with a high strike price.
	Buy one low strike price call + Buy one high strike price call + Short two middle strike call.

Question 31 pts

Which of the following choice will be the best action today, given

Stock Price		$32
Risk-free rate		10.5% (continuous compounding)
1-yr $30 Call option price		$8
1-yr $30 Put option price		$2
	"sell call, buy put, buy stock"

	"buy call, sell put, buy stock"
	"sell call, buy put, sell stock"

"buy call, sell put, sell stock"

Question 41 pts

Suppose Mary bought a put at $5 and sells at $15. Her $10 profit is subject to the capital gains tax.

	True
	False

Question 51 pts

Options on Tesla stocks are issued by Tesla company.

	True
	False

Question 61 pts

The value of an American put option on non-dividend paying stock is identical to that of an European put.

	True
	False

Question 71 pts

A European call option and a European put option on a stock both have a strike price of $45 and expire in 6 months. Currently, the stock price is $45.01 and the put price is $2.10. The risk-free rate is 2% per annum continuous compounding. Calculate the CALL price.

Hint: put-call parity

Round to the nearest 2 decimal points. For example, if your answer is 123.456, then enter "123.46".

Question 81 pts

Mary expects XYZ stock price will differ a lot from $80 but not sure whether it will be smaller or larger. She wants to create a straddle. Calculate her initial cash flow.

Strike price	Call option price	Put option price
$80	$8.81	$4.78
$90	$6.98	$5.35

If it's a cash inflow, enter a positive number. If it's a cash outflow, enter a negative number.

Question 91 pts

Mary is creating a butterfly spread using the following 3 call options.

	Strike Price	Call Option Price
	$90	$20.81
	$100	$10.26
	$110	$5.73

Calculate her initial cash flow of butterfly spread.

If it's a cash inflow, enter a positive number. If it's a cash outflow, enter a negative number.

Question 101 pts

Mary speculates XYZ stock price will increase. Today she creates a bull spread using the following 2 call options.

Strike Price	Call option price
$40	$6.2
$45	$4.6

At expiration, XYZ price becomes $62. Calculate the bull spread profit.

Round to the nearest 2 decimal points. For example, if your answer is $12.34, then enter "12.34".