QUESTION 9 Consider the following table of trades in the 7025 call option on the...

50.1K

Verified Solution

Question

Finance

image

QUESTION 9 Consider the following table of trades in the 7025 call option on the SP1200 futures contract Rather than trading in a single derivative to close out the trades, what other trade also would close out this position? Number of Contracts Traded Premium (points) Open Position Total Premium Received / (Paid) -100 (ie short 100 contracts) 150 (ie long 150 contracts) -250 150 -100 17.6 21.9 4.1 9.1 20.0 Buying 150 SP1200 futures contracts b.Selling 150 7025 put contracts and selling 150 SP1200 futures contracts C. Buying 150 7025 put contracts and buying 150 SP1200 futures contracts d. Selling 150 7025 piut contracts

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students