Question
When the market price is greater than the exercise price of a call option, the call option is said to be: * At-the-money. Out-of-the-money. In-the-money.
When the market price is greater than the exercise price of a call option, the call option is said to be: *
At-the-money.
Out-of-the-money.
In-the-money.
If F0(T) > FV(S0), an arbitrageur would: *
conduct a reverse carry arbitrage strategy.
sell the forward contract and purchase the underlying.
purchase the forward contract and sell the underlying short.
What should be the price of a futures contract on a treasury bond that have a spot price of 990, and will expire after 4 years, and a risk-free rate of 6%: *
1,112
1,090
1,050
Salma pays $100 per share to buy 500 shares of a non-dividend-paying firm. The purchase is done on margin, and the leverage ratio at purchase is 3.0X. Three months later, She sells the shares for $90 per share. Ignoring transaction costs and interest paid on the margin loan, Salma's 3-month return was closest to: *
-30%.
-40%.
-10%.
ABC Stock value on the expiration date of call option is $88.50. The call purchased with a $2.20 premium & an exercise price of $85, what is the breakeven price? *
$88.50.
$87.20.
$86.30.
Mohamed purchased on margin account, 200 shares of FAWRY stock at a price of 3.5 L.E. per share. The margin requirement was 50%. The stock price has increased to 4.2 L.E. per share. What the return of this position during the holding period? *
30%
10%
40%
A buy order for one million shares with a limit price of 62, and an instructions of good-till-cancel. The good-till-cancel instruction is most accurately referred to as a(n): *
Clearing instructions.
Execution instructions.
Validity instructions.
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