1. An investor buys a call option on EBAY with a strike price 16.0, and a call premium of 1. If EBAY expires at 22, what profit did the investor make? Each option covers 100 shares of the underlying stock.
2. A common price for Nasonex in Europe is 12. The Dollar/Euro Exchange Rate is 1.2. According to PPP what should be the price of Nasonex in Dollars in the United States?