Call Put Volume Last XYZ Stock Price Expiration 38.65 Date Strike Price 25 December 30 November 30 December 35 November 35 December 35 March 40 November 250 8.75 154 Volume 1001 464 572 1748 580 33 530 4.50 5.25 Last 0.15 0.10 0.35 0.35 1.25 2.65 2.40 923 2023 1.15 Of the series of options shown above, how many of the put contracts are currently trading out of the money? 1 4 5 ABC stock is trading at $59 and ABC call options exercisable at $60 are trading at $2.00. What is the intrinsic value of the ABC calls? $1 O $2 SO $3 CEB call options with an exercise price of $60 are trading at $2.00. You sell 5 CEB call option contracts at this price. Two weeks later CEB stock is trading at $63 and you decide to buy back the calls at a price equal to intrinsic value plus $0.50 of time value. What is your profit or loss on these transactions? $150 loss $350 profit $350 loss $750 loss $750 profit Which of the following is not a characteristic of a right? Rights generally have short maturities consisting of a few weeks to three months. Rights have certificates mailed to shareholders on the record date. Rights are usually transferable. The subscription price for a right is generally higher than the current market price. Forwards differ from futures in that. forwards are traded on an exchange but futures are not. forwards are standardized. futures can only be bought or sold on physical commodities. futures have no counterparty risk. Which of the following statements is true regarding a put writer? The put writer expects the stock to split. The put writer expects to sell the stock prior to expiration of the option. The put writer expects the stock to remain the same or move upward. The put writer expects the stock to remain the same or move down. If the required rate of return increases and other factors remain constant, the P/E ratio of a company will: become negative become more volatile. decrease increase Investment dealers are compensated for their work in a public offering by: commissions paid by the buyers of the security. commissions paid by institutional investors. guaranteed investment contracts. the underwriting fee. Call Put Volume Last XYZ Stock Price Expiration 38.65 Date Strike Price 25 December 30 November 30 December 35 November 35 December 35 March 40 November 250 8.75 Volume 100 464 572 1748 580 331 530 154 923 Last 0.15 0.10 0.35 0.35 1.25 2.65 2.40 4.50 5.25 2023 1.15 From the chart above, which of the following puts is in the money? 40 Nov 30 Nov (25 Dec KD 35 Dec By law, insiders of a publicly traded company are required to: O report on any transaction involving any publicly held company. disclose all information about their portfolio holdings. list their entire portfolio holdings with the appropriate Exchange. file reports if they conduct trades in that issuer's securities. The choice between following an active or a passive investment strategy generally depends on all of the following factors, except the: amount of investment involved. O investor's belief in market efficiency. investor's expertise Time available to analyze stocks A financing where the underwriter agrees, prior to filing the preliminary prospectus, to purchase the securities at a fixed price is a: bought deal rights offering. agency deal. best efforts financing
