Question 12(1 point)

Which of the following statements is correct? (More than one answer is possible.)

Question 12 options:

A speculator owns or planes to buy the underlying asset, a hedger does not.

A hedger owns or planes to buy the underlying asset, a speculator does not.

An airline buying long oil futures is an example of hedging.

A politician buying cattle futures is an example of speculation.

Question 13(1 point)

You purchase a long call option giving you the right to buy 100 shares of Isher Corporation for a total premium of $2,000.The strike price on the option is $26 and the final stock price is $68.What is your profit or loss?