(6 pts) If the maintenance margin is $2,700, will a margin call result? If so, on...
- (6 pts) If the maintenance margin is $2,700, will a margin call result? If so, on which day? How much will Mike be required to deposit into his account?
- (8 pts) Suppose a trader sells 5 S&P 500 e – mini contracts for one month out at a value of 2871.68. At the settlement date, the S&P 500 index is at 2999. What is the traders total profit or loss?
- (8 pts) Suppose a trader sells 5 S&P 500 e – mini contracts for one month out at a value of 2871.68. At the settlement date, the S&P 500 index is at 2825.3 What is the traders total profit or loss?
Homework Answers
For E-Mini Contract Unit =50 (For Margin Call Calculation Initial Margin and price of S&P index each day of holding is required)
Traders Profit/Loss at expiration price of 2999= (2871.68-2999)*50= - $6366
Traders P/L at expiration price of 2825.3= (2871.68-2825.3)*50=+$2319
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(6 pts) If the maintenance margin is $2,700, will a margin call
result? If so, on...
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2. Suppose the maintenance margin is $5 and initial margin is $10. A long trader trades...
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BF2207 Question 2 Suppose that, six months ago, you sold a call option on 1,000,000 euros...
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Assume the following premia: Strike $950 Call $120.405 93.809 84.470 71.802 51.873 Put $51.777 74.201 1000...
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This question is related to foreign exchange. Question 4 1 pts Questions 3-7 are based on...
This question is related to foreign
exchange.
Question 4 1 pts Questions 3-7 are based on the following information: Assume the six-month European call option has a striking price of $0.95/CHF. Assume the option premium is $0.02/CHF If at the due date, the value of the Swiss Franc has risen to $1.00, the option is option is e in the money; $0.05/CHF The net profit/loss of the buyer of the in the money; $0.03/CHF out of the money; $0.03/CHF o...
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This question is related to foreign
exchange.
Question 4 1 pts Questions 3-7 are based on the following information: Assume the six-month European call option has a striking price of $0.95/CHF. Assume the option premium is $0.02/CHF If at the due date, the value of the Swiss Franc has risen to $1.00, the option is option is e in the money; $0.05/CHF The net profit/loss of the buyer of the in the money; $0.03/CHF out of the money; $0.03/CHF o...
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