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Use the followingtable that shows the options available on DEF stock (whichcurrently trades at $112) to answer the next seven questions.

	Call Premiums	Put Premiums
Strike	Jan.	Feb.	Jan.	Feb.
105	7.50	7.75	.50	.60
110	6.25	6.50	.65	.75
115	1.15	1.20	3.25	3.62
120	.75	.95	8.10	8.85 Question 15 What is the exercisevalue of the 115 Feb. put option? Round intermediate steps to fourdecimals and your final answer to two decimals. Do not use currencysymbols or words when entering your response. 5 points Question 16 Assuming that theannual risk-free rate is 5% and the time until expiration is 6months, an investor could earn an arbitrage profit by shorting asynthetic 110 Jan. put option and buying a 110 Jan. put option inthe marketplace. True False 5 points Question 17 Suppose that youdecided to set up a short strip position using the Jan. 105options. Find your profit/loss if the stock trades for $110 whenthe options expire. Round intermediate steps to four decimals andyour final answer to two decimals. Do not use the dollar sign whenentering your answer. 5 points Question 18 Suppose that youdecided to set up a long strap position using the Feb. 110 options.Find your profit/loss if the stock trades for $127 when the optionsexpire. Round intermediate steps to four decimals and your finalanswer to two decimals. Do not use the dollar sign when enteringyour answer. 5 points Question 19 A hedge fund managerbelieved that DEF stock would be relatively stable over herinvestment horizon and decided to use the Feb 120 options to createa straddle position based on her belief. If the stock trades for$127 when the options expire, what is her profit/loss? -90 90 280 -280 None of the above 5 points Question 20 Suppose that youdecided to create a long strangle position using the 115 Feb calland the 110 Feb put when the stock price traded at $112. Find yourprofit/loss if the stock trades at $118 when the optionsexpire. 105 -105 605 -605 None of the above