Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please answer both: 1. On April 1, you bought one S&P 500 Index futures contract at a futures price of 1,530. If, on June 15,

Please answer both:

1. On April 1, you bought one S&P 500 Index futures contract at a futures price of 1,530. If, on June 15, the futures price was 1,612, what would be your profit (loss) if you closed your position (without considering transactions costs)? The multiplier is $250

None of the choices

$15,550 profit

$15,550 loss

$1,550 loss

$20,500 profit

2.

Suppose you purchase one AAPL December 130 call contract at $6 and write one AAPL December 138 call contract at $2. What is the lowest stock price at which you can break even?

$136

$134

$140

None of the options are correct.

$132

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Sport Finance

Authors: Gil Fried, Timothy D. DeSchriver, Michael Mondello

3rd Edition

1450421040, 978-1450421041

More Books

Students also viewed these Finance questions

Question

Th e person I wanted to complain about might have lost her job.

Answered: 1 week ago

Question

Th ey would have been rude to me.

Answered: 1 week ago

Question

Who knows? Th ey might have spit in my food in the kitchen.

Answered: 1 week ago