You purchase 30 call option contracts on Falcon Corp. stock….

You purchase 30 call option contracts on Falcon Corp. stock. Each contract controls 100 shares. The strike price is $50, and the premium is $2 per share.  If the stock is selling for $50 at expiration, what are your call options worth? What is your net profit or loss?

A portfolio manager oversees a $200 million equity portfolio…

A portfolio manager oversees a $200 million equity portfolio with a weekly return standard deviation of 8 percent. Assuming portfolio returns are normally distributed and the expected weekly return is zero, what is the dollar loss expected with a 2.5 percent probability?