Aastha wants to short 500 shares of LC at $18 a share, while Brian wants to buy 500 at the same price on margin. If both face an initial margin requirement of 60% and a maintenance margin requirement of 50%, determine how much cash each must have in order to enter this transaction. Suppose that each of them has exactly the required amount of cash, and they enter their desired positions.

What is an opportunity cost? How is this concept used in TVM analysis, and where is itshown on a time line? Is a single number used in all situations? Explain.

Explain realized rate of return

c. In the table above, two of the options are not priced correctly, i.e., are either more expensive or cheaper than what they should sell for. Which two? (Select all that apply) Mar call Apr call Oct call Mar put Oct put Apr put

Is there a margin requirement, when you buy a CFD ?

n 0 1 2 3 4 5 6 7 8 9 10 A -$250 $60 $970 B -$200 $90 $90 $60 $60 Net Cashflow с -$70 $20 $10 $5 -$50 $60 $50 $40 $30 $20 $10 D -$300 $270 $250 -$129 -$20 $120 $40 E -$90 -$100 -$50 $0 $150 $150 $100 $100

can you draw a profit diagram of the portfolio above and state any assumptions that must be made. Also, is the cost of the portfolio positive?

Why do you use incremental cost analysis when picking alternatives and how do you constuct a choice table

Outline any problems you are aware of associated with the discounting of future costs and benefits in Cost Benefit Analysis.