Trader writes two naked put option contracts

Trader writes two naked put option contracts

Assignment Help Financial Management

Reference no: EM132008952

1. A trader writes two naked put option contracts. The option price is $3, the strike price is $40 and the stock price is $35. What is the initial margin (one option contract is for the purchase of 100 shares)?

2. A United States investor writes six naked call option contracts. The option price is $4, the strike price is $60.00, and the stock price is $57.00. What is the initial margin requirement (one option contract is for the purchase of 100 shares)?

3. An investor has exchange-traded call options to buy 100 shares for a strike price of $20. There is a $1 cash dividend. Which of the following is the position of the investor after the cash dividend?

Call options to buy________ for a strike price of__________?

Reference no: EM132008952

Questions Cloud

Describe the three concentration strategies : Describe the three concentration strategies (market penetration, market development, and product development) and then provide a real-world example of each.

Write a brief discussion of genetic risk for chronic disease : Write a brief discussion of your genetic risk for certain chronic diseases, and an analysis of whether or not your current dietary habits may increase your risk

Considering setting up a master data system : When an organization is considering setting up a master data system, is it worth the cost to set it up? Is it feasible financially?

How do you view Joceyln symptoms : You are a Feminist school counselor who has just taken on a new student's young mother. How do you view Joceyln's symptoms

Trader writes two naked put option contracts : A trader writes two naked put option contracts. The option price is $3, the strike price is $40 and the stock price is $35. What is the initial margin.

Does it make business sense to expend resources : Does it make business sense to expend resources to do more than just what is required by law?

The prosperity ease of life of the north american class : Many middle-class Americans do not realize the size of their role in this system of consumption and waste.

Differentiation-service competitive strategy : Does the new banning practice hurt Amazon's differentiation-service competitive strategy?

Why would a company such as cisco systems : Why would a company such as Cisco Systems, Inc. use a scorecard?

Reviews

Write a Review

Required(*) Message

Financial Management Questions & Answers

Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd