Question
The current price of a stock is $145, and three-month European call options with a strike price of $149 currently sell for $6.40. An investor
The current price of a stock is $145, and three-month European call options with a strike price of $149 currently sell for $6.40. An investor who feels that the price of the stock will increase is trying to decide between buying 100 shares and buying 1,600 call options. Both strategies involve an investment of $14,500.
please answer the following
1.If the price of white maize (increases/decreases).............the investor will receive a margin call.
2.The price of white maize will have to change by R..........per tonne in order for the investor to receive a margin call.
3.The investor will receive the margin call if the new price of white maize is R.......per tonne
4.If the margin call is not met by the investor the broker will.............the position.
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