1 an investor buys a put with a striking price of 2500 for, Ask an Expert

Finance

1. An investor buys a put with a striking price of $25.00 for $5.00. The stock price on the last trading day of the contract is $21.00. The gross gain or loss if he closes out his position.

a. $1000

b. $400

c. -$100

d. $0

2. If it is expected that the stock market is about to decline dramatically, the best alternative for an investor is to:

a. Short a stock index futures contract

b. Hedge current short positions

c. Create a futures straddle position.

d. Buy a stock index futures contract

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92830221

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