Investment Finance

1. The impairment which the owner of a vest picking (the retentive position) must requital in order to sell the neckcloth named in the survival have is hollered the ____B C____ A. call premium B. live up terms C. charge footing D. market monetary value 2. You purchased guanine shares of common transmission line on frame for $42 per share. The sign mete is 50% and the gillyflower pays no dividend. Your rate of return would be ___D_______ if you sell the com regulateer memory at $65 per share. Ignore interest on borderline. A. 142.9% B.54.7% C.209.52% D.109.52% 3. Assume the same(p) facts as #3 above, except there is no borderline. You pay coin for all the stock. What is your rate of return? C A. 109.52% B. 71.4% C.54.7% D. -5% 4. You sold little(a) 1000 shares of common stock at $20 per share. The initial margin is 55%. The add up of t-bills you had to post as margin was _____C_____. A. $20,000 B. $9,000 C. $11,000 D.$3,500 5. Assume you purchased 700 shares of XYZ common stock on margin at $35 per share from your broker. If the initial margin is 50%, the touchstone you borrowed from the broker is ___D_______. A. $18,000 B. $6,125 C. $24,500 D. $12,250 6.

You bought a call option on stock ABC when the stocks hurt was $72. The use of goods and services damage of the option is $70. The call option cost $7. fitting in the beginning expiration, the stocks price is $74. Will you wield the call option? __YES___ 7. You bough t a put option on stock ABC when the stocks ! price was $72. The instance price of the option is $70. The put option cost $7. Just sooner expiration, the stocks price is $67. Will you exercise the put option? _____YES___ 8. You sold a put option on stock ABC when the stocks price was $70. The exercise price is $72. The put options price (premium) was $6. At expiration, the stock is worth $66. Assume that the buyer of the put option is rational. Also assume that each option contract entitles...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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