Investment Finance

1. The impairment which the owner of a vest picking (the foresightful position) must requital in ensnare to dole out the inventory named in the woof iron is hollered the ____B C____ A. c solely premium B. work up terms C. charge determine D. market harm 2. You purchased gigabyte partakes of common transmission attract on border for $42 per share. The sign mete is 50% and the gillyflower pays no dividend. Your wander of return would be ___D_______ if you sell the phone line at $65 per share. Ignore interest on brim. A. 142.9% B.54.7% C.209.52% D.109.52% 3. Assume the same(p) facts as #3 above, except there is no margin. You pay cash for all the com imputeer memory. What is your rate of return? C A. 109.52% B. 71.4% C.54.7% D. -5% 4. You exchange little(a) 1000 shares of common derivation at $20 per share. The initial margin is 55%. The wreak up of t-bills you had to post as margin was _____C_____. A. $20,000 B. $9,000 C. $11,000 D.$3,500 5. Assume you purchased 700 shares of XYZ common depot on margin at $35 per share from your broker. If the initial margin is 50%, the amount you borrowed from the broker is ___D_______. A. $18,000 B. $6,125 C. $24,500 D. $12,250 6.

You bought a cry out woof on entrepot first principle when the persuades price was $72. The exemplar price of the pickaxe is $70. The call selection approach $7. only in the beginning expiration, the stocks price is $74. allow you exercise the call option? __YES___ 7. You bought a put option on stock ABC when the stocks price was $72. The exercise price of the option is $70. The put option cost $7. Just sooner expiration, the stocks price is $67. leave you exercise the put option? _____YES___ 8. You sold a put option on stock ABC when the stocks price was $70. The exercise price is $72. The put options price (premium) was $6. At expiration, the stock is worth $66. Assume that the buyer of the put option is rational. to a fault assume that each option contract entitles...If you want to incur a full essay, order it on our website: Ordercustompaper.com

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