Which of the following positions are bullish on the stock market

Question # 00104060 Posted By: solutionshere Updated on: 09/17/2015 01:48 PM Due on: 10/17/2015
Subject Business Topic General Business Tutorials:
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Please show your work or reasoning for the following questions: Which of the following positions are bullish on the stock market? I. buying a stock index II. writing a put on stock index III. buying a call on the stock index IV. selling a call on the stock index Answer choices: a. I and II only b. I and IV only c. II and III only d. I, II, and III only e. I, II, and IV only Sara bought both a call and a put option contract on ISE stock with a strike price of $30. The options both expire on the same day. If the stock price at expiration is $32, Sara will-------the call and ------the put. a. exercise; exercise b. exercise; not exercise c. not exercise; exercise d. not exercise; not exercise e. exercise; continue to hold You purchased 1 June call 1440 S&P500 future contract at a price of $32. At the expiration date, the underlying index was price is 1438.50. What is your dollar profit or loss if you hold the option till expiration? (Hint, 1 point for S&P500 future contract =$250) a. $32 b. $0 c. $8,000 d. -$16,000 e. -$8,000 You purchased 1 June call 65 Crude oil at a price of $2.30. At the expiration date, the Crude oil price 72.60. What is your dollar profit or loss if you hold the option till expiration? a. $5,300 b. $0 c. -$2,300 d. $3,300
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  1. Tutorial # 00098427 Posted By: solutionshere Posted on: 09/17/2015 01:48 PM
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