21. If Fincorp stock trades in a dealer market with bid price of 55.25 and asked price of 55.50, a) Suppose you have submitted an order to your broker to buy at market. At what price will your trade be executed? b) Suppose you have submitted an order to sell at market. At what price will your trade be executed? c) Suppose you have submitted a limit order to sell at $55.62. What will happen? d) Suppose you have submitted a limit order to buy at $55.37. What will happen?

Which of the following characteristics accurately describes the stock market? An active market that determines the price of a firm’s shares   A fixed-income market where participants buy and sell debt securities     The bid-ask spread in a dealer market represents the profit that a dealer would make on a transaction involving a security. Which of the following statements best describes the bid-ask spread? The difference between the closing price of the security and the opening price of the security on the day of the transaction.   The sum of the price at which a dealer is willing to buy a security and the price at which a dealer is willing to sell it.   The difference between the price at which a dealer is willing to buy a security and the price at which a dealer is willing to sell it.     Fernando, a trader, wants to buy 1,000 shares of XYZ stock, while a second trader, Ally, is willing to sell 1,500 shares of the same stock. Unfortunately, Fernando…

19. Which is the correct bar chart if the stock's opening price is P15, closing price is P25, highest price is P30, and lowest price is P10? a. d.

Suppose the current ABC stock price is $50 and an option trader speculates this price will fall below $50 soon. Which set of actions is the best strategy for him? buy the Stock and write a $50 call buy $40 call and short $60 call short $40 put and buy $60 put buy $50 call and buy $50 put

Suppose that a hedge fund enters a market order to immediately sell 1600 shares. Compute the execution price for this trade. Top of the limit order book Price Shares 3400 103.12 2000 102.92 1600 102.71 500 102.50 Asks 100 102.30 Bids 200 102.10 700 101.89 1600 101.69 2100 101.48 3200 101.28 A. The exection price for immediately selling 1600 shares is $102.71 per share. B. The exection price for immediately selling 1600 shares is $101.83 per share. OC.The exection price for immediately selling 1600 shares is $102.10 per share. D. The exection price for immediately selling 1600 shares is $102.50 per share. O E. The exection price for immediately selling 1600 shares is $101.69 per share. O F. The exection price for immediately selling 1600 shares is $101.89 per share. G. The exection price for immediately selling 1600 shares is $102.30 per share.

5. Explain and give appropriate use of the following option trading strategies along with their Payoff.: a. Spreads b. Straddles c. Strangles d. Covered Call and Protective Put. State Put-Call Parity theorem for European options. European put and call options with a strike price of Rs. 24 and expiry in 6-months are trading at Rs. 5.09 and Rs. 7.78, respectively. The current stock price is Rs. 20.37 with a risk-free interest rate continuously compounding equal to 7.48%. Is there an arbitrage opportunity? How can it be exploited?

Use the binomal option pricing model to estimate the Call price.               Stock price (S)  $120.00            Stock price up (Su)  $170.00            Stock price down (Sd)  $50.00            Strike price (K)  $120.00            rf 1.0%                                       Call price up (Cu)             Call price down (Cd)                           D             PV(B)                           Call price (C)

Please advise

Like a share of stock, EFTs trade _____ A) on an exchange  B) once per day  C) at an average price and depending upon the broker used may be subject to a _____ A) front end load fee B) back end loan fee C) brokerage commission

What is the difference between the long and the short positions in a contract for the future delivery of the S&P 500 stock index? If you expect stock prices to fall, do you buy or sell stock index futures?View Solution: What is the difference between the long and the short