Question 2

0 / 1 point

David purchases 100 shares of a stock with market price of $33.67 per share. A call option on this stock with exercise price of $60 has a premium of $1.03. A put option with exercise price of $25 has a premium of $4.83. If David uses these two options to form a collar, what will be his net before-tax per share dollar return if the stock price is $39.16 at expiration?

Round the answer to two decimals.

Answer:

Question 3

0 / 1 point

Sally decides to buy a Treasury note futures contract for delivery of $100,000 face amount in December, at a price of 1103.0. At the same time, Scott decides to sell a Treasury note futures contract if he can get a price of 1103.0 or higher. The exchange, in turn, agrees to sell one Treasury note contract to Sally at 1103.0 and to buy one contract from Scott at 1103.0. The price of the Treasury note increases to 11023.5. Calculate Sally's profit/loss.

Please note that loss should be entered with minus sign.

Round the answer to two decimal places.

Answer:

Question 4

0 / 1 point

Mary decides to buy a Treasury note futures contract for delivery of $100,000 face amount in September, at a price of 12031.0. At the same time, Eric decides to sell a Treasury note futures contract if he can get a price of 12031.0 or higher. The exchange, in turn, agrees to sell one Treasury note contract to Mary at 12031.0 and to buy one contract from Eric at 12031.0. The price of the Treasury note decreases to 12011.5. Calculate Eric's gain/loss.

Please note that loss should be entered with minus sign.

Round the answer to two decimal places.

Answer:

Question 6

0 / 1 point

Mary decides to buy a Treasury note futures contract for delivery of $100,000 face amount in September, at a price of 12023.0. At the same time, Eric decides to sell a Treasury note futures contract if he can get a price of 12023.0 or higher. The exchange, in turn, agrees to sell one Treasury note contract to Mary at 12023.0 and to buy one contract from Eric at 12023.0. If the price of the Treasury note decreases to 12013.0. Calculate Eric's balance on margin account. Assume that initial margin is $1,890.

Round the answer to two decimal places.

Answer: