James sells 150 call options with a strike price of $59 and a premium of $2 per contract. If the market price equals $62 at expiration, calculate his profit/loss from this transaction.

Q: You are in a short futures contract to sell 5,000 bushels of wheat for 450 cents per bushel. The…

A: Margin call simply refers to the scenario wherein the margin account's funds fall below the required…

Q: Mr. Saso holds a short position in euros through five March futures contracts, with each contract…

A: Short position means sell now shares and buy them in future and settle the deal. Contract size =…

Q: return of 15% has the choice of receiving one of the following: (6 points) 10 annual payments of…

A: We have to calculate present value FACTOR anniuty and than we have to calculate present value.

Q: The price of Stock Y, which is currently $80, can go to $120, $90, or $60 in 6 months’ time.…

A: Assume that P1, P2, and P3 are the probabilities that the price of the stock increases upto $120,…

Q: A trader signs a Forward contract on April 30 for the delivery of 500 gallons of oil on October 31.…

A: A forward contract is a financial agreement between two parties to buy or sell an underlying asset…

Q: Suppose Yuki writes a naked 90 day call for 10,000 NZD at a strike price of NZD/JPYk = 78.53. She…

A: Writs a call means Selling a call option for a amount of premium

Q: A farmer sells futures contracts at a price of $6.70 per bushel on 10,000 bushels of corn. The spot…

A: The futures contract refers to the derivative contracts in which two parties of the contract agree…

Q: 2. Mike sold a put option on British pounds for $.04 per unit. The exercise price was $1.70, and the…

A: Given : Mike sold a put option on British pounds for $.04 per unit. The exercise price was $1.70,…

Q: You sell one Hewlett Packard August 50 call contract and buy one HewlettPackard August 50 put…

A: First, let's understand the question. We are dealing with options contracts here. A call option…

Q: A trader sells two July futures contracts on frozen orange juice. Each contract is for the delivery…

A: Margins are required to be maintained in account with brokers to keep position open in market.

Q: A dealer is quoting a bid discount of 0.75 and an ask discount of 0.73 on a T-Bill with a maturity…

A: First let us determine the bid ask spread. Bid the amount you receive if you sell a T-Bill and ask…

Q: A “three-against-nine” FRA has an agreement rate of 4.79 percent. You believe six-month CME Term…

A: Here,Type 3 X 9 FRA, this means that the FRA is of 6 months period starting from three months from…

Q: You enter into a futures arrangement to purchase 40 Alpacas. The futures price is $8400/Alpaca. You…

A: Futures : Futures contracts are derivatives contracts where the price at which the underlying can be…

Q: You buy 6 call options with a contract size of AUD 30,000. They have a USD/AUD price of 0.57 and a…

A: Call option gives the opportunity to buy the currency on the expiration but there is no obligation…

Q: Mike sold a put option on British pounds for $.04 per unit. The exercise price was $1.70, and the…

A: Per unit net profit on option  = Option premium + ( Spot price - Exercise price ), if the spot price…

Q: Today is July 14, 2021 and an investor enters into a FRA in which she will pay 8% per year for a…

A: Interest=$1,000,000×e8%×312-1             =$1,000,000×1.02020134002676-1…

Q: You buy 6 call options with a contract size of AUD 30,000. They have a USD/AUD strike premium of…

A: Call option gives the opportunity to buy the currency on the expiration but there is no obligation…

Q: Nii Laryea purchased a T-bill with a GHC10,000 par value for GHC9465. One hundred days later, Nii…

A:

Q: Find the BEY of a Treasury Strip that you can purchase for settlement on Oct. 24, 2019 at a quoted…

A: Here, Quoted Price is 89 Face Value is 100 Settlement Date is Oct-24,2019 Maturity Date is…

Q: Jobbar sold a put option on British pounds for €.035 per unit. The exercise price was €1.1370, and…

A: The options are the derivatives, which provide the right, but not the obligation to buy or sell the…

Q: On November 29, 2019 you bought one July 2020 maturity corn futures contract at a futures price of…

A: Futures Contract Price per Bushel = $3.90Spot Price per Bushel = $3.78Total Quantity (in Bushel) =…

Q: ption for $10,000 at a premium of P7,000. The exercise price is P52.10 per dollar. On the balance…

A: A put option is an option where the buyer of a put option has the right to sell at the strike price…

Q: Find the PV of Dalvi’s contract if he gets $25 each year for the next 10 years; a Balloon Payment of…

A: Signing Amount is paid to initiate the contract in beginning whereas Balloon Payment is lump-sum…

Q: Assuming Nifty trades at Rs. 17,200 on 18.02.2022. Your client enters a long straddle by buying a…

A: 1. Call option - call option provides the holder of the option , the right and not the obligation to…

Q: You enter into 10 short soybean futures contract (each contract is for 5000 bushel) for delivery of…

A: A short position in futures have been taken where the contracted price on three different grades of…

Q: Day Settlement Price (Rs) 1 1460 2 1480 3 1455 4 1435 5 1440 • Prepare the margin account showing…

A: Initial Margin balane is Rs5000 Maintaince margin balance is Rs 4000 Contract size is 100 To Prepare…

Q: T-bill Return. Troy paid $18,881 for a one year T-bill with a face value of $20,000. What is Troy's…

A: Price  (P) = $ 18,881 Face value (F) = $ 20,000 Period (t) = 1 Year

Q: The premium on a pound call option is $0.03 per unit. The exercise price is $1.60. The break-even…

A: Options are the derivative instruments that give the investor the option to take a position in the…

Q: You observe the following quote for a call option on MSFT. The option has a strike price of $255 and…

A: given, ask price = $7.06 bid price= $6.14 strike price = $255 contract = 9

Q: Assume you are a speculator who purchased a IPE Brent Crude call option contract at an…

A: Call option gives holder an option to purchase the stock. it gives a right but not an obligation to…

Q: a wheat trader who believes that the price of wheat will increase in the short-term. He takes a long…

A: A future contract is an agreement to buy or sell the underlying asset on a specified future date and…

Q: of 3 montns, a strike price date O a. The premium will be refunded to Mr. Joseph. O b. The seller…

A: Put option is in money when price of stock is below strike price of put but out of money when prices…

Q: A “three against nine” FRA has an agreement rate of 4.94 percent. You believe six-month LIBOR in…

A: A Forward Rate Agreement (FRA) is a financial contract between two parties where they agree to…

Q: suppose that Mr. Binda buys a three-month 5,000 contracts to buy 'commodity-X at a futures price of…

A: The margin requirements are imposed as a necessary requirement incase of volatility. In volatile…

Q: Mike purchased a put option on British pounds for $.04 per unit. The exercise price was $1.70, and…

A: Purchase Price of a put option on British pounds =$.04 per unit The exercise price = $1.70, The spot…

Q: t the end of six months for a wheat farmer who sold previously a six-month wheat futures contract,…

A: In future market you can sell or purchase based on the market.

Q: Steph creates a ratio spread by buying four 100-strike put options and selling one 110-strike put…

A: A put option (or "put") is a contract that grants the option buyer the right, but not the…

Q: e a futures price of Php5000 at the start of the transaction, with Php250 initial margin requirement…

A: Given, Position taken = Long, A margin call would be made when balance in account falls below…

Q: You are short 15 gasoline futures contracts, established at an initial settle price of $2.085 per…

A: Given in question Initial margin      =7425 Maintenance margin   =6500 Price at the end of 4 trading…

Q: You buy 6 call options with a contract size of AUD 30,000. They have a USD/AUD strike price of 0…

A: Call option gives the opportunity to buy the currency on the expiration but there is no obligation…

Q: An investor enters into a long oil futures contract when the futures price is $18.0 per barrel. The…

A: Future contract is defined as the contact that fixes the prices which transaction are executed in…

Q: Suppose that on September 05, 2021, a company takes a short position in one April 2022 live - cattle…

A: To calculate the settlement price at the end of the day, we need to determine the gain or loss on…

Q: A “three-against-nine” FRA has an agreement rate of 4.76 percent. You believe six-month LIBOR in…

A: FRA refers to an agreement between the customer and the bank for paying or receiving the…

Q: A trader bought two July futures contracts. Each contract is for the delivery of 1,000 barrels. The…

A: Given: Number of futures bought: 2 Lot size of each futures contract: 1,000 barrels Initial Margin:…

Q: An investor has taken 50 short positions on a futures contract with a starting time of 4 TL per…

A: A contract price refers to the price which is listed in the contract happened between the two…