1. According to the stakeholder theory of capital structure, would someone prefer to work for a high-debt or a low-debt firm? Explain why.
2. Put Option Writing. Suppose you write 15 put option contracts with a $45 strike. The premium is $2.40. Evaluate your potential gains and losses at option expiration for stock prices of $35, $45, and $55.
3. Index Option Positions. Suppose you buy one SPX call option with a strike of 1425 and write one SPX call option with a strike of 1450. What are the payoffs at maturity to this position for S&P 500 Index levels of 1350, 1400, 1450, 1500, and 1550?