Pick up the one(s) that can be contracted as OTC product. Choose all the correct answers. V Equity Forward O Currency Futures Interest Rate Swap Commodity Options VFRA


Pick up the one(s) that can be contracted as OTC product. Choose all the correct answers.<br>V Equity Forward<br>O Currency Futures<br>Interest Rate Swap<br>Commodity Options<br>VFRA<br>

Extracted text: Pick up the one(s) that can be contracted as OTC product. Choose all the correct answers. V Equity Forward O Currency Futures Interest Rate Swap Commodity Options VFRA
A put option has premium of p(0)=$6 and X=$30. The stock price right now is S(0)=$25. Which of the following statement could be wrong?<br>At expiration, the buyer of the put will not make a profit unless the stock's price goes below $30.<br>|At expiration, the writer of the put will always make profits if the price of the stock exceeds $30<br>A protective put based on the stock and the put has a maximum possible loss of -$1<br>When the underlying price at expiration goes to $31, a protective put based on the stock and the put gets breakeven (i.e. no gain or loss)<br>

Extracted text: A put option has premium of p(0)=$6 and X=$30. The stock price right now is S(0)=$25. Which of the following statement could be wrong? At expiration, the buyer of the put will not make a profit unless the stock's price goes below $30. |At expiration, the writer of the put will always make profits if the price of the stock exceeds $30 A protective put based on the stock and the put has a maximum possible loss of -$1 When the underlying price at expiration goes to $31, a protective put based on the stock and the put gets breakeven (i.e. no gain or loss)

Jun 02, 2022
SOLUTION.PDF

Get Answer To This Question

Related Questions & Answers

More Questions »

Submit New Assignment

Copy and Paste Your Assignment Here