Insure the performance of futures contracts

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Reference no: EM132053423

1. __________ requirements serve to insure the performance of futures contracts.

a. Margin

b. Experience

c. Age

d. Income

2. A put option is in the money if the strike price is __________ the market price of the underlying security.

a. less than

b. equal to

c. greater than

d. none of the above

Assume that you hold a short position in an oil futures contract at $40 per barrel and covered as the price rose to $50 per barrel, the profit/loss in your account would be __________ per barrel.

a. a loss equal to the option premium

b. $0

c. a $10 profit

d. a $10 loss

Reference no: EM132053423

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