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1. The market price of Tesla Inc.s stock (TSLA) is currently at $730. You expect the price to change greatly from its current level in the next weeks but you cannot confidently predict whether the change will be an increase or a decrease. And, you want to trade options on TSLA to generate a profit. Based on your expectation, which option strategy should you implement?

a butterfly spread

a straddle combination

a bullish spread

a bearish spread

2. The market price of Boeing Companys stock (BA) is currently at $140. You expect the price to change greatly from its current level in the next weeks but you cannot confidently predict whether the change will be an increase or a decrease. And, you want to trade options on BA to generate a profit. Based on your expectation, which option strategy should you implement?

Group of answer choices

a straddle combination

a bearish spread

a butterfly spread

a bullish spread

3. The market price of Tesla Inc.s stock (TSLA) is currently at $730. You expect the price to remain very close to its current level. And, you want to trade options on TSLA to generate a profit. Based on your expectation, which option strategy should you implement?

Group of answer choices

a butterfly spread

a bullish spread

a bearish spread

a straddle combination

4.The market price of Boeing Companys stock (BA) is currently at $140. You expect the price to remain very close to its current level. And, you want to trade options on BA to generate a profit. Based on your expectation, which option strategy should you implement?

Group of answer choices

a bearish spread

a butterfly spread

a bullish spread

a straddle combination

5. The common stock of Boeing Company (BA) is currently trading at $146 per share. Consider the following options that are on one share of (BA) and have the same delivery date of May 15^th, 2020.

• Put option with a strike price of $135 and premium of $5
• Put option with a strike price of $145 and premium of $8
• Call option with a strike price of $135 and premium of $22
• Call option with a strike price of $145 and premium of $16
• Call option with a strike price of $155 and premium of $12

You have implemented a butterfly spread with these options. The break-even prices for your strategy are $ and $ . The maximum possible profit from it is $ and minimum possible profit is $ . If necessary, round your answers to the nearest $1

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