Reference no: EM131660640

Please show all working so I can understand how you arrive at the answer.

Question 1: Your client purchased 300 shares of Speedy Airlines common stock at $27.86 a share in July of 2015. In June of 2016 the client writes 2 October 35 calls at 8 against the stock position. If the market of Speedy Airlines is trading at $39.28 at expiration, what is the client's realized gain?

Round the answers to two decimal places.

Question 2: John, a short seller is trying to determine his break-even point. With no other securities, John plans to short sell 100 shares of XYZ at $64.37. Next John plans to sell an XYZ October Put for $700. John will break-even when the price of the stock is at:

Question 3: Sarah instructs his broker to buy a March 50 call option on Super Brand at 3. If the stock of Super Brand is trading at $55.08 at expiration, what is Sarah's realized gain?

Question 4: Paul instructs his broker to buy an uncovered October 35 call option on Best Eastern at 5. If the stock of Best Eastern is trading at $25.73 at expiration, what is Paul's realized gain or loss? Gain should be entered as a positive value. Loss should be entered as a negative value.

Question 5: John purchased 300 shares of Big Trouble common stock at $25.32 a share in July of 2015. In June of 2016 John buys 3 October 35 puts at 4. If the market of Big Trouble is trading at $31.98 at expiration, what is John's realized gain?