Chapt 7 #1, 2, 5  (Swaps - solutions in back of book.)
Chapt 8  #9, 10, 17    (Option Mechanics)

Answers:
17a  X* = 36.36      17b. no change   17c.  X=10, N=2000

OTIS:  In LE#2, you bought an ETF or mutual fund, and hedged the position with S&P 500 index futures. Record the following in your OTIS journal

What was the dollar gain or loss on your mutual fund or ETF?   In percent?

What was the dollar gain or loss on your position in S&P 500 Index funds?   In percent?  

Did your hedge "work"?   Why or why not?

Close out your hedge by  entering the opposite trade in  S&P 500 Index futures.

Now, insure your mutual fund/ETF against a 10% decline by either buying puts on the S&P Index, or  puts on SPY.  In class, we showed how to calculate the number of puts.  You will have to choose the appropriate strike price.  Record in your journal how you made those calculations.

If you want to trade additional calls/puts, go ahead!