Reference no: EM131312315
These are some homework problems, i would appreciate some help with these.
( 1) What are some advantages of the early exercise feature of American options?
( 2) What is meant by a “March cycle” with option contracts? Which contracts trade?
( 3) What investment strategies would lead an investor to invest in a short call, long call, short put, or long put?
( 4) What are meant by flex options?
( 5) How are dividends handled with most option contracts? What would be the impact of a 3/2 stock split – or equivalently a 50% stock dividend – on an option’s strike price and number of underlying shares?
( 6) What is meant by an offsetting order?
( 7) Why can’t options be bought on margin?
( 8) In what sense does covered call writing generate income for the holder of a portfolio of stocks?
( 9) What is meant by a wash sale? Why is it illegal?
(10) How does the constructive sales rule apply to options?
(11) Which party issues warrants? What happens when a warrant is exercised?
(12) How does an executive stock option differ from exchange-traded options?
(13) How is a convertible bond like an option?
(14) Why have OTC options become more important since the 1980s?
(15) What advantages do OTC options offer?
(16) What is meant by an exotic option?
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What is meant by a march cycle with option contracts
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