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- An investor purchases a stock for $38 and a put for $.50 with a strike price of $35. The investor sells a call for $.50 with a strike price of $40. What is the maximum profit and loss for this position? (Loss amount should be indicated by a minus sign.) Maximum profit Maximum loss $ GAGAAn investor purchases a stock for $38 and a put for $.50 with a strike price of $35. The investor sells a call for $.50 with a strike price of $40. What is the maximum profit and loss for this position? Maximum profitThe price of a stock is $64. A trader buys 1 put option contract on the stock with a strike price of $60 when the option price is $10. When does the trader make a profit? a. When the stock price is below $50 b. When the stock price is below $54 c. When the stock price is below $60 d. When the stock price is below $64
- The price of a stock is $67. A trader sells 5 put option contracts on the stock with a strike price of $70 when the option price is $4. The options are exercised when the stock price is $69. What is the trader's net profit or loss? O Loss of $1,500 O Loss of $1,000 Gain of $1,000 Gain of $1,500 None of these < Previous NextA trader buys a call option with a strike price of $30 for $3. Does the trader ever exercise the option and lose money on the trade. Explain.Suppose that an investor purchases the common stock at the current market price of $58/share and simultaneously sells for $12 a call to buy the shares at the strike price of $50. At the expiration of the call, price of stock is $77. What is the net profit on the position for this investor? (Round your answer the nearest dollar, do not enter with the dollar sign)
- A dealer writes a March put option with a strike price of $30. The price of the option is $4. Under what circumstances does the dealer make a profit of $4? Select one:a.The dealer makes a profit of $4 if the price of the stock is below $26 at the time of exercise. b.The dealer makes a profit of $4 if the price of the stock is above $30 at the time of exercise. c.The dealer makes a profit of $4 if the price of the stock is below $30 at the time of exercise. d.The dealer makes a profit of $4 if the price of the stock is above $26 at the time of exercise. A trader enters into a short greasy wool futures contract when the futures price is $11.70 per kg. The contract is for the delivery of 2,000 kgs clean weight. How much does the trader gain or lose if the greasy wool at the end of the contract is $11.50 per kg? Select one:a.The trader gain $ 40. b.The trader loss $ 400. c.The trader gain $ 400. d.The trader loss $ 40.8. An investor sells a futures contract an asset when the futures price is $1,500. Each contract is on 100 units of the asset. The contract is closed out when the futures price is $1,540. Which of the following is true A. The investor has made a gain of $4,000 B. The investor has made a loss of $4,000 C. The investor has made a gain of $2,000 D. The investor has made a loss of $2,000The price of a stock is $64. A trader buys 1 put option contract (each contract is for 100 options) on the stock with a strike price of $60 when the option price is $10. When does the trader make a profit? When the stock price is below $54 O When the stock price is below $60 O When the stock price is below $50 O When the stock price is below $64 ◄ Previous Next ▸
- Refer to the following chart. An investor (a day trader) always buys 500 shares of stock at the market close price and sells them at the last sale price, paying a $30 commission per transaction. The stock the trader bought is MSLV. (a) Find the total cost.$ (b) Find the return for the day.$ (c) Find the percent of return. (Round your answer to one decimal place.)2. Suppose you buy shares of a stock worth OMR20000 and the initial margin is 50% and the maintenance margin is 30%. A. How much money must you pay the broker for the shares? How much have you borrowed from the broker? B. Suppose the price of the stock falls so that the shares are only worth OMR10000. What would be your nev account equity? C. How much money you need to give the broker to meet the maintenance margin?Suppose a trader buys a stock at $70, buys a put option on the same stock with strike X at a price p=$10 and borrows $80 at r= 0%. For what values of the strike price X will this trader always make money regardless of St