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  3. please answer both questions i really need for a c

please answer both questions I really need for a class!!!! thank you!!! ...

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Finance

please answer both questions I really need for a class!!!! thank you!!!
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3. What is a derivative and how do they work? Where does their value derive from? You decide to purchase a call option at a strike price of $25. Would you exercise that option if the current price of the stock is $29 ? Would you exercise that option if the current price of the stock is $222 What If instead of a call option, you had purchased a put instead? Would you exercise the put with the strike price at $25 if the current price of the stock is $29 ? What about exercising the put with the current price of the stock being $22 ? 9. Suppose an investor initially pays $8,000 toward the purchase of $12,000 worth of stock and borrows the remaining $4,000. The purchase was for 120 shares at $100 per share. What is the initial percentage margin? What happens if the price declines to $65? What if it declines further to $50 ? Why would a broker consider establishing a maintenance margin and what will the broker do if the percentage margin falls below the maintenance margin? What would the investor have to do at that point to keep the trade active

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