Question

Which one of the following is a synthetic long put? a. Long stock, short put b. Long stock, short call c. Long stock, long put d. Short stock, long put e. Short stock, long call 7.

You establish the following position: Short 1 ABCD 320 Put @ 6 If the delta of the put is 0.50 and the gamma is 0.03, what would the new delta be if ABCD decreases from 321 to 320? a. 0.47 b. 0.50 c. 0.53 d. 0.56 e. 0.60 8.

Which of the following choices is a primary component in theoretical options pricing calculations? a. Volatility b. Annual interest rate c. Stock price d. Days to expiration e. Strike price f. All of the above 9.

You have established the following positions: Long 500 ABC Nov 1240 Calls @ 5 Long 500 ABC Nov 1205 Puts @ 6 What is the traditional margin requirement? a. $500,000 b. $550,000 c. $600,000 d. $700,000

Answer 1