Week 8: Derivatives Individual Assignment Problem 1 (20 Points) Suppose you have $20,000 for investments. Zeus Corporation is selling at $100 per share. A call option with a $100 strike price and 3 months to maturity is also available at a premium of $5. A) Calculate your percentage profit/loss if you buy the shares of the stock and Zeus is selling at (i) $120 per share in 3 months. (ii) $ 80 per share in 3 months. B) Calculate your percentage profit/loss if you buy the call options with a strike price of $100 and Zeus is selling at (i) $120 per share in 3 months. (ii) $ 80 per share in 3 months. Problem 2 (10 points) You bought 20 Verizon Put Option Contracts with a strike price of $100. The option premium was $2. Each option contract = 100 units of CJC stock. What is your gain or loss if at option expiration, Verizon sells for (i) $90/share (ii) $110/share