Question
1. What is the profit/loss of selling 3-month $25,300 (forward price F) corn forward contract when the corn price is $25,500 per contract after 3
1. What is the profit/loss of selling 3-month $25,300 (forward price F) corn forward contract when the corn price is $25,500 per contract after 3 months? Group of answer choices $25,300 $25,500 $200 -$200
2.
What is the profit/loss of shorting(writing) November 100 put on expiration date when the stock price is 106 and put premium was $6.30?
Group of answer choices
$6.30
-$6.30
$0.30
-$-0.30
3.
Which statement is CORRECT about option traders?
Group of answer choices
The writer of the call option has the right to buy stocks at the strike price
The buyer of the put option has the right to buy stocks at the strike price
The writer of the call option may have the obligation to sell stocks at the strike price
The buyer of the call option may have the obligation to buy stocks at the strike price
4.
Compute the net profit or loss on the maturity date for a December 60 put for which the buyer paid a premium of $4.15 and the spot price at maturity is $58.50
Group of answer choices
$1.50
$3.15
-$2.15
-$2.65
5.
Suppose that you bought a stock for $60, received a dividend of $1, and sold it for $61 after 160 days. Your annualized arithmetic rate of return equals
Group of answer choices
5.01%
6.12%
7.60%
8.11%
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