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4. (20) Use the price information for SPY ETF July 2021 call options to answer these questions. You manages a fund that hold a basket of stocks with similar return to the SPY. You want to generate 4% additional income a year (1% every 3 months). Thus, you decided to sell the $433 call. What would be your maximum 3 month return if the SPY does go up to $433 or higher? How many contracts do you have to sell if you have a portfolio worth $20 billion? Would you be able to achieve that? The total contract outstanding is in the second column from the right. Finance Home Watchlists My Portfolio Screeners Yahoo Finance Plus Markets News Personal Finance Vid 1988 19.44 19.68 +0.59 +3.06% 124 2.091 16.98% 19.32 1869 18.85 +0.49 2.60% 102 2.177 16.69% SPY210716000406000 2021-05-03 3:30PM EDT 406.00 SPY210716000407000 2021-05-03 9:30AM EDT 407.00 SPY210716C00408000 2021-05-03 4:04PM EDT 408.00 SPY210716C00409000 2021-05-03 1 28PM EDT 409.00 SPY210716C00410000 2021-05-03 4-10PM EDT 410.00 18.28 17.94 18.10 +0.48 2.70% 969 2,162 16 51 17.85 17.26 17.36 +0.37 +212% 421 4,632 16 32 16.13N 16 68 16.54 16.62 -0.07 -0.42% 154 15.059 SPY210716C00411000 2021-05-03 11:19AM EDT 411.00 16.42 15.82 15.89 +0,30 +1.85% 54 4.376 1593% SPY210716C00412000 2021-05-03 234PM EDT 412.00 15.13 15.12 15 15 -0.22 -1.43% 395 4,088 15.718 SPY210716C00413000 2021-05-03 4:05PM EDT 413.00 14 64 14.42 14.46 -0.02 -0.14% 61 2.729 15.53% SPY210716C00414000 2021-05-033-16PM EDT 414,00 1419 13.74 13.77 +0.21 +1.50 146 3.179 15 35% 13.16 13.07 1311 -0.28 2.089 425 5,427 15.18% 1261 12.42 12.45 -0.14 110% 615 4,396 15.00% 12.00 11.78 1181 -004 0.33% 1,359 3.294 14.83 11.21 11.16 11.19 -0.21 184% 474 4,252 1466 10.62 10.55 10.59 -0.20 103 2,292 14 51% 10.00 9.96 9.99 -3.29% 599 7.935 14.33% SPY210716C00415000 2021-05-03 4:12PM EDT 415.00 SPY210716C00416000 2021-05-03 3:59PM EDT 416.00 SPY210716000417000 2021-05-03 3:55PM EDT 417.00 SPY210716C00418000 2021-05-03 4:14PM EDT 418.00 SPY210716C00419000 2021-05-03 4:11PM EDT 419.00 SPY210716C00420000 2021-05-03 4:13PM EDT 420.00 SPY210716C00421000 2021-05-03 4:08PM EDT 421.00 SPY210716C00422000 2021-05-03 4:14PM EDT 422.00 SPY210716000423000 2021-05-03 4:0GPM EDT 123.00 SPY210716000424000 2021-05-03 201PM EDT 424,00 SPY210716000425000 2021-05-03 3:58PM EDT 425.00 SPY210716C00426000 2021-05-03 2:01PM EDT 426.00 9.54 9.38 9.42 009 -0.93% 130 2.442 14.18% 8.88 8.83 8.87 -0.22 -2.42% 338 2.115 14.03N 8.43 8.29 8.33 -0.13 612 1.141 1388 7.96 7.77 7.81 -0.11 -130 175 1,283 13.733 7.36 7.31 7.32 0.24 538 7.334 13.60% 7.29 6.80 6.84 +0.25 +3.55% 625 1,247 13.46 SPY210716000427000 2021-05-03 2:25PM EDT 427 00 6.51 634 6:38 0.101.56% 247 1.723 1332 SPY210716C00428000 2021-05-03 3:55PM EDT 428.00 6.00 5.91 5.95 +0.02 +0.33% 151 1.513 13.20 SPY210716C00429000 2021-05-03 1:02PM EDT 429.00 5.94 5.49 5.53 021.3.66% 132 1.978 13.07 G11 2011.05.03 2.5PMENT sin 51 54 1997 4. (20) Use the price information for SPY ETF July 2021 call options to answer these questions. You manages a fund that hold a basket of stocks with similar return to the SPY. You want to generate 4% additional income a year (1% every 3 months). Thus, you decided to sell the $433 call. What would be your maximum 3 month return if the SPY does go up to $433 or higher? How many contracts do you have to sell if you have a portfolio worth $20 billion? Would you be able to achieve that? The total contract outstanding is in the second column from the right. Finance Home Watchlists My Portfolio Screeners Yahoo Finance Plus Markets News Personal Finance Vid 1988 19.44 19.68 +0.59 +3.06% 124 2.091 16.98% 19.32 1869 18.85 +0.49 2.60% 102 2.177 16.69% SPY210716000406000 2021-05-03 3:30PM EDT 406.00 SPY210716000407000 2021-05-03 9:30AM EDT 407.00 SPY210716C00408000 2021-05-03 4:04PM EDT 408.00 SPY210716C00409000 2021-05-03 1 28PM EDT 409.00 SPY210716C00410000 2021-05-03 4-10PM EDT 410.00 18.28 17.94 18.10 +0.48 2.70% 969 2,162 16 51 17.85 17.26 17.36 +0.37 +212% 421 4,632 16 32 16.13N 16 68 16.54 16.62 -0.07 -0.42% 154 15.059 SPY210716C00411000 2021-05-03 11:19AM EDT 411.00 16.42 15.82 15.89 +0,30 +1.85% 54 4.376 1593% SPY210716C00412000 2021-05-03 234PM EDT 412.00 15.13 15.12 15 15 -0.22 -1.43% 395 4,088 15.718 SPY210716C00413000 2021-05-03 4:05PM EDT 413.00 14 64 14.42 14.46 -0.02 -0.14% 61 2.729 15.53% SPY210716C00414000 2021-05-033-16PM EDT 414,00 1419 13.74 13.77 +0.21 +1.50 146 3.179 15 35% 13.16 13.07 1311 -0.28 2.089 425 5,427 15.18% 1261 12.42 12.45 -0.14 110% 615 4,396 15.00% 12.00 11.78 1181 -004 0.33% 1,359 3.294 14.83 11.21 11.16 11.19 -0.21 184% 474 4,252 1466 10.62 10.55 10.59 -0.20 103 2,292 14 51% 10.00 9.96 9.99 -3.29% 599 7.935 14.33% SPY210716C00415000 2021-05-03 4:12PM EDT 415.00 SPY210716C00416000 2021-05-03 3:59PM EDT 416.00 SPY210716000417000 2021-05-03 3:55PM EDT 417.00 SPY210716C00418000 2021-05-03 4:14PM EDT 418.00 SPY210716C00419000 2021-05-03 4:11PM EDT 419.00 SPY210716C00420000 2021-05-03 4:13PM EDT 420.00 SPY210716C00421000 2021-05-03 4:08PM EDT 421.00 SPY210716C00422000 2021-05-03 4:14PM EDT 422.00 SPY210716000423000 2021-05-03 4:0GPM EDT 123.00 SPY210716000424000 2021-05-03 201PM EDT 424,00 SPY210716000425000 2021-05-03 3:58PM EDT 425.00 SPY210716C00426000 2021-05-03 2:01PM EDT 426.00 9.54 9.38 9.42 009 -0.93% 130 2.442 14.18% 8.88 8.83 8.87 -0.22 -2.42% 338 2.115 14.03N 8.43 8.29 8.33 -0.13 612 1.141 1388 7.96 7.77 7.81 -0.11 -130 175 1,283 13.733 7.36 7.31 7.32 0.24 538 7.334 13.60% 7.29 6.80 6.84 +0.25 +3.55% 625 1,247 13.46 SPY210716000427000 2021-05-03 2:25PM EDT 427 00 6.51 634 6:38 0.101.56% 247 1.723 1332 SPY210716C00428000 2021-05-03 3:55PM EDT 428.00 6.00 5.91 5.95 +0.02 +0.33% 151 1.513 13.20 SPY210716C00429000 2021-05-03 1:02PM EDT 429.00 5.94 5.49 5.53 021.3.66% 132 1.978 13.07 G11 2011.05.03 2.5PMENT sin 51 54 1997

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