Question
1. You decide to invest your entire $500 by purchasing the equities. After 1 month the stock price goes down to $85 and you liquidate
1. You decide to invest your entire $500 by purchasing the equities. After 1 month the stock price goes down to $85 and you liquidate liquidate your position? What is your profit?
2. You decide to invest your entire $500 by purchasing the equities. After 1 month the stock price goes down to $85 and you liquidate liquidate your position? What is your Holding Period Return?
3. You are bullish on a particular security and have $500 to invest. The stock is trading for $100. Call options with a strike price of $100 are trading for $1.00. You decide to invest your entire $500 by purchasing call options. How many options contracts can you purchase?
4. You are bullish on a particular security and have $500 to invest. The stock is trading for $100. Call options with a strike price of $100 are trading for $1.00. You decide to invest your entire $500 by purchasing call options. After 1 month the stock price goes up to $115 and you liquidate liquidate your position? What was your profit?
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The Money Markets Handbook A Practitioners Guide
Authors: Moorad Choudhry
1st Edition
0470821507, 978-0470821503
