1. It is september and an investor writes a december put option with a strike price of $30. the price of the option is $4. if the option is held until december and the stock price is $35 at the time, what will be the investors cash flows?
2. Determine the present value of $6,000,000 received as a single payment in five years, discounted at 3%. Next, determine the present value based on a 9% rate. Explain why there is a difference between these values. What does this say about interest rates in TVM calculations?