True or False: suppose that the stock of IMB has a price of $7, and it follows a Binomial tree with factor of appreciation 1.4 and factor of depreciation 0.6. Consider the stock of IMB, and a 2- steps lived put option with a strike of $ 11. Then, the option premium must increase to $1.7.

A PUT and a CALL option are written on a stock with a strikeprice of $60. The options are held until expiration.   Suppose the stock price at expiration is $75. Call premium is $16 and Put premium is $3. The CALL option will ___ because the call is ___. But the PUT option will ___ because the put is ___, with a TIME VALUE of ___.a) Be exercised; in-the-money; not be exercised; out-of-the-money; zerob) not be exercised; out-of-the-money; be exercised; in-the-money; zeroc) Be exercised; in-the-money; not be exercised; out-of-the-money; 1d) Be exercised; in-the-money; be exercised; in-the-money; zeroe) None of the above is correct

A. An option is trading at $5.03. If it has a delta of -.56, what would the price of the option be if the underlying increases by $.75? What would the price of the option be if the underlying decreases by $.55? B. What type of option is this and how? C. With a delta of -.56, is this option ITM, ATM or OTM and how?

Based on the put - call parity, please briefly explain how to replicate a call option of a stock with a strike price of $100. Assume that the risk-free rate is 5%.