A trader has a margin account with total cash deposit of $20, 000. He bought 400 shares of a stock at the price of $100. If the minimum margin maintanance is 25%, what price of the stock today would lead to a margin call on his account? If withdraw is allowed at the margin ratio is above 50% after the withdraw, What price of the stock today would allow him to withdraw $2, 000 cash from the margin account?

You would like to be holding a protective put position on the stock of XYZ Co. to lock in a guaranteed minimum value of $109 at year- end. XYZ currently sells for $109. Over the next year the stock price will increase by 12% or decrease by 12%. The T-bill rate is 6%. Unfortunately, no put options are traded on XYZ Co. a. Suppose the desired put option were traded. How much would it cost to purchase? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Cost to purchase b. What would have been the cost of the protective put portfolio? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Cost of the protective put portfolio c. What portfolio position in stock and T-bills will ensure you a payoff equal to the payoff that would be provided by a protective put with X = 109? Show that the payoff to this portfolio and the cost of establishing the portfolio match those of the desired protective put. (Do not round…

You own a call option on Intuit stock with a strike price of $34. When you purchased the option, it cost $6. The option will expire in exactly three months' time. a. If the shares are trading at $43 in three months, what will be the payoff of the call? What will be the profit of the call? b. If the shares are trading at $31 in three months, what will be the payoff of the call? What will be the profit of the call? c. Draw a payoff diagram showing the value of the call at expiration as a function of the share price at expiration. d. Redo (c), but instead of showing payoffs, show profits. a. The payoff of the call is $ (Round to the nearest dollar.) and the profit of the call is $

A stock's current price is $20 and a 3-month call with a strike price of $22 sells for $2. You have $4,000 to invest and are comparing two alternate strategies: 1) Buy 200 shares of the stock; 2) Buy 2,000 call options on the stock. Which of the following is correct? The two strategies are equally profitable when the stock price is $26.00 O b. The two strategies are equally profitable when the stock price is $22.00 О с. The option strategy is more profitable when the stock price is $26.00 LO