Differences among scalpers-day traders and position traders

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Question 1. Explain each of the following concepts as they relate to call options.

a. Delta

b. Gamma

c. Rho

Question 2. What are the differences among scalpers, day traders, and position traders?

Question 3. Assume the possible stock prices of Hull Inc. are $150, $155, $160, $165, $170, $175, and $180.Theprice(premium) is $5 for October165 put option of Hull Inc.

Suppose you buy one October 165 put option contract(Np=100)of Hull Inc. and hold it until the options expire.

a. Determine the profit and loss at respectivestock prices of Hull Inc.

b. Determine the breakeven stock price at expiration.

c. What are the maximum possible profit and loss on this transaction.

Reference no: EM133133937

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