26. All of the positions listed will benefit from a price decline, except:

(a) Short put

(b) Long put

(c) Short call

(d) Short stock

27. The premium on a long term call option on the market index with an exercise price of 950 is $12.00 when originally purchased. After 6 months the position is closed and the index spot price is 965. If interest rates are 0.5 % per month, what is the Call Payoff?

(a) $2.64

(b) $12.00

(c) $12.36

(d) $15.00

28. The premium on a call option on the market index with an exercise price of 1050 is $9.30 when originally purchased. After 2 months the position is closed and the index spot price is 1072. If interest rates are 0.5 % per month, what is the Call Profit?

(a) $9.30

(b) $9.39

(c) $12.61

(d) $22.00

29. A put option if purchased and held for 1 year. The Exercise price on the underlying asset is $40. If the current price of the asset is $36.45 and the future value of the original option premium is $1.62 , what is the put profit, if any at the end of the year?

(a) $1.62

(b) $1.93

(c) $3.55

(d) $5.17

30. What are the similarities and differences between bear and bull spreads?