1. You buy 300 shares of ABC stock at $53 per share. At the same time, you write 300 call options on ABC stock with exercise price equal to $51 and call premium $6.92. Calculate your profit if ABC stock price at the expiration of the option is $48.06 per share.
A. $594
B. -$594
C. -$1,482
D. $1,482
E. $692
2. You buy 320 call options with exercise price of $72 and call premium of $6.50. You write 640 call options with exercise price of $75 and call premium of $4.10. You also buy 320 call options with exercise price of $78 and call premium of $2.90. All the options have the same underlying asset and expire on the same date. Calculate the profit of your strategy if the stock price at expiration is equal to $76.70.
A. $40
B. $44
C. $36
D. $32