Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please answer this two mc questions The balance of an investor's margin account who goes short asset decreases futures contract, will when the value of

please answer this two mc questions
image text in transcribed
The balance of an investor's margin account who goes short asset decreases futures contract, will when the value of the underlying asset increases and will when the value of the underlying O A decrease increase O increase increase OC increase: decrease OD. decrease, decrease The price of a stock an February 1 is 548. A trader se 200 put options on the stock with a strike price of 540 when the option price $2. The options are exercised when the stock price $39. The trader's net profit or loss is O Gain of $200 O Lots of $200 OC Loss of 1000 OO. Lots of 5900

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

Finance And Economics Discussion Series Is Learning By Exporting Important Micro Dynamic Evidence From Colombia Mexico And Morocco

Authors: United States Federal Reserve Board , Sofronis Clerides

1st Edition

1288722362, 9781288722365

More Books

Students also viewed these Finance questions