HI can anyone help with these two example questions? I’m stuck. Thanks

- If chances are 22% that a $30 put will expire in the money and 25% that the $40 call will expire in the money and you buy a 30 call and sell a 40 call then what is the probability… A) that the combination is worth less than $10 on expiration? B) that the combination is worth more than $10 on expiration? C) that the combination is worth zero on expiration?

(Not multiple choice, need 3 answers)

- Which of the following are true for the “Expected Profit” on a stock option trade? (terminal stock price = stock price at the expiration of the option) A. For a call The greater of (the terminal stock price minus the strike or zero) minus the premium is the “Expected Profit” For a put The greater of (the strike minus the terminal stock price or zero) minus the premium is the “Expected Profit” B. For a call The greater of (the terminal stock price that has the greatest probability minus the strike or zero) minus the premium is the “Expected Profit” For a put The greater of (the strike minus the terminal stock price that has the greatest probability or zero) minus the premium is the “Expected Profit” C. For a call (the sum of the greater of (the stock price minus the strike or zero) at each potential stock price multiplied by the probability of that stock price being the terminal stock price) minus the premium is the “Expected Profit” For a put (the sum of the greater of (the strike minus the stock price or zero) at each potential stock price multiplied by the probability of that stock price being the terminal stock price) minus the premium is the “Expected Profit” D. For a call (the sum of the greater of (the stock price minus the strike or zero) at each potential stock price multiplied by the probability that the terminal stock price will exceed that stock price) minus the premium is the “Expected Profit” For a put (the sum of the greater of (the strike minus the stock price or zero) at each potential stock price multiplied by the probability that the terminal stock price will be below that stock price) minus the premium is the “Expected Profit” E. The sum of the “Expected Profit” on one thousand independent option trades will be very close to the sum of the actual profit on those same trades. (Please give True / False for A through E)

Thanks!