Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please show or explain how you got the answers 1- If a writer sells a put option with a strike price of $70 at $3

Please show or explain how you got the answers

1- If a writer sells a put option with a strike price of $70 at $3 per share, what is her net profit or loss if the underlying stock at expiration is selling at $72?

Select one:

a. $5 per share

b. $3 per share

c. $1 per share

d. -$5 per share

2-You buy 500 shares of BHC stock at $80 a share on margin. The initial margin is 50% and the maintenance margin requirement is 30%. If the stock price drops to $60, what will be the actual margin in your account?

Select one:

a. 67%

b. 50%

c. 33%

d. 25%

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

Fundamentals Of Futures And Options Market

Authors: John C. Hull

6th Edition

0132242265, 9780132242264

More Books

Students also viewed these Finance questions