Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Financial Accounting Expert

problem1. Which of the following is NOT true?

A) When a CBOE call option on IBM is exercised, IBM issues more stock
B) An American option can be exercised at any time throughout its life
C) A put option will always be exercised at maturity if the strike price is greater than the underlying asset price
D) An call option will always be exercised at maturity if the underlying asset price is greater than the strike price

problem2. The price of a stock on February 1 is $48. A trader sells 200 put options on the stock with a strike price of $40 when the option price is $2. The options are exercised when the stock price is $39. The trader's net profit or loss is

A) Loss of $200
B) Loss of $800
C) Loss of $900
D) Gain of $200

problem3. Which of the following is NOT true?

A) Futures contracts nearly always last longer than forward contracts
B) Futures contracts are standardized; forward contracts are not
C) Delivery or final cash settlement basically takes place with forward contracts; the same is not true of futures contracts
D) Forward contracts basically have one specified delivery date; futures contract over and over again have a range of delivery dates

problem4. A company enters in the long futures contract to buy 1,000 units of a commodity for $60 per unit. The initial margin is $6,000 and the maintenance margin is $4,000. What futures price will allow $2,000 to be withdrawn from the margin account?

A) $62
B) $58
C) $66
D) $64

problem5. The basis is defined as spot minus futures. A trader is hedging the sale of an asset with the short futures position.
The basis rises unexpectedly. Which of the following is true?

A) The hedger's position worsens
B) The hedger's position improves
C) The hedger's position stays the same
D) The hedger's position sometimes worsens and sometimes improves

Financial Accounting, Accounting

  • Category:- Financial Accounting
  • Reference No.:- M93417

Have any Question? 


Related Questions in Financial Accounting

I correction of improper cost entries plant acquisitions

I. (Correction of Improper Cost Entries) Plant acquisitions for selected companies are presented below. 1. Protex Inc acquired land, buildings, and equipment from a bankrupt company, for a lump-sum price of $700,000. At ...

Analyze the changes made to corporate governance rules

Analyze the changes made to corporate governance rules since the implementation of the Sarbanes–Oxley Act of 2002. Based on your analysis, formulate an opinion on whether or not these changes are sufficient in preventing ...

Assignmentthe company is premier inc that needs to be usedi

Assignment The company is Premier Inc. that needs to be used. I will need a 3-4 pageanalysis and a Power Point presentation (no more than 10 slides) Write your paper, read carefully, and consider possible edits and chang ...

What is the main purpose of the healthcare reform also

What is the main purpose of the Healthcare Reform also known as the Affordable Care Act? How will individual States influence delivery and how should reform alternatives be considered?

On december 31 2009 adams corporation acquired all of the

On December 31, 2009, Adams corporation acquired all of the stock of Baker company. the fair value of Adam's shares used in the exchange was $7,500,000. At the time of acquisition, the book value of Baker's stockholder's ...

Bulllocate 1-2 articles from a news source that discusses

• Locate 1-2 articles from a news source that discusses the Federal Intelligence Surveillance Court (FISA Court) and write a 1-2 page paper that answers the following questions: 1. How and why was this court created? 2. ...

Describe six different subjects a risk manager should

Describe six different subjects a risk manager should include in a curriculum designed for physicians to engage them in patient safety practices. Describe what might be included in each of these modules. Before you do th ...

Financial acounting assignmentcompanies1-oula fuel

FINANCIAL ACOUNTING ASSIGNMENT Companies: 1- Oula fuel marketing co 2- Kuwait resort company http://www.boursakuwait.com.kw/Stock/Financials.aspx?Stk=651&S=INC 1. Revenue Recognition Revenue is the largest item on the in ...

1 at what position levels of employees is ethics an

1. At what position levels of employees is ethics an important part of decision making in a company? 2. The Foreign Corrupt Practices Act outlaws what type of business practices and how? 3. Conduct a Porter’s 5 forces an ...

Assignment non florida fte case problemin the state of xxx

Assignment: Non Florida FTE Case Problem In the State of XXX, funding of public education is handled through a Foundation program. The state funds a student at a weighted FTE value of $3,150. Based on a local school dist ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen