[单项选择]An investor buys a call option with a $25 exercise price priced at $4 and writes a call option with a $40 exercise price priced at $2.50. If the Price of the stock increases to $50 at expiration and the options are exercised on the expiration date, the net profit at expiration (ignoring transaction costs) is:

[单项选择]An investor bought a 15 call for $14 on a stock trading at $20. If the stock is trading at $24 at option expiration, what is the profit and the value of the call at option expiration Profit Value of the Call ①A. - $5 $5 ②B. $4 - $5 ③C. - $5 $9

[单项选择]An investor buys 200 shares of ABC at the market price of $100 on full margin. The initial margin requirement is 40 percent and the maintenance margin requirement is 25 percent. If the shares of stock later sold for $ 200 per share, what is the rate of return on the margin transaction（）
A. 250%.
B. 100%.
C. 200%.

[单项选择]An investor writes a July 20 call on a stock trading at 23 for premium of $4. The breakeven price on the trade and the maximum gain on the trade are, respectively: Breakeven Price Maximum Gain ①A. $24 $4 ②B. $24 $3 ③C. $27 unlimited

[单项选择]An options investor purchases one put option on March coffee futures. The put has the following characteristics: Type of option put option Underlying asset 1 March coffee futures contract(37500pounds) Exercise price $ 0.775 per pound Premium $ 0.0425 per pound Expiration date March The current price (futures price) of the March coffee futures contract is $ 0.762 per pound. This LONG put option is:（）
A. in the money in the amount of $ 0.013 per pound.
B. in the money in the amount of $ 0.7325 per pound.
C. out of the money in the amount of $ 0.762 per pound.

[单项选择]An options investor purchases one stock put option on General Motor’s stock. The put has the following characteristics : Type of option: put option Underlying asset: 100 shares of General Motor’s stock Exercise price : $75 per share Premium: $1.81 per share Expiration date : November By taking a LONG position in this put option, the investor has:（　）
A. purchased the right to decide whether to sell 100 shares of General Motor’s stock and receive $181 during the specified time period (the expiration date in November) 
B. purchased the right to decide whether to purchase 100 shares Of General Motor’s stock and receive $181 during the specified time period (the expiration date in November) 
C. none of the above

[单项选择]An options investor sells one stock put option with the following characteristics: Type of option: put option on stock Underlying asset: 100 shares of Bank of America Stock Exercise price : $55 per share Premium : $2.44 per share Expiration date : October By taking a SHORT position in this put option, the investor has（　）
A. obligated herself to sell 100 shares of Bank of America stock and receive $5500 during the specified time period (expiration date in October). 
B. purchased the right to decide whether to sell 100 shares of Bank of America stock and receive $5500 during the specified time period (expiration date in October). 
C. obligated herself to purchase 100 shares of Bank of America stock and pay $5500 during the specified time period (expiration date in October).

[单项选择]Option investor D sells (writes, takes a SHORT position in) one of the following call options: Type of option: call option Underlying asset: 100 shares of Disney stock Exercise price: $40 per share Premium : $2.25 per share Expiration date : January The current market price of Disney stock is $39.02 per share. Investor D already owns 500 shares of Disney stock. Which of the following describes the amount of initial margin required for this transaction（　）
A. Since the call option is "in the money" investor D is not required to deposit initial margin. 
B. Since investor D owns at least 100 shares of Disney stock, he must deposit initial margin in the amount of 100% of the option premium. 
C. Since investor D owns at least 100 shares of Disney stock, no additional margin is required.

[判断题]A call option is an option which gives the buyer the right to sell the currency at the stated strike price on or before the expiry date.

[单项选择]The lower bound on European call option prices can be adjusted for cash flows of the underlying asset by :（　）
A. adding the present value of the expected dividend payments to the current asset price.
B. subtracting the present value of the expected dividend payments from the exercise price.
C. subtracting the present value of the expected dividend payments from the current asset price.

[单项选择]Given the covered call option diagram below and the following information, what are the dollar values for points X and Y The market price of the stock is $70, the strike price of the call is $80, and the call premium is $5.（　）
A. $75, and point Y represents a dollar value of $15. 
B. $70, and point Y represents a dollar value of $15. 
C. $80, and point Y represents a dollar value of $15.

[单项选择]A European stock index call option has a strike price of $116.0 and a time to expiration 5 years. Given a risk-free rate of 4% , if the underlying index is trading at $1200 and has a multiplier of 1, then the lower bound for the option price is or the option price is closest to:

[单项选择]Don Weaver purchased a call option on Dominic InC. with an exercise price of $20. Weaver paid $3.50 for the option, which is an American option that expires in 90 days. Dominic does not pay any dividend, and the stock is currently trading at $22 per share. The moneyness and intrinsic value of this option could be best described as: Moneyness Intrinsic Value ①A. in-the-money $1.50 ②B. in-the-money $2.00 ③C. out-of-the-money $1.50

[单项选择]The value of an interest-rate call option at expiration is zero or the:（　）
A. present value of, the market rate minus the exercise rate, adjusted for the period of the rate, times the principal amount. 
B. market rate minus the exercise rate, adjusted for the period of the rate, times the principal amount. 
C. present value of, the exercise rate minus the market rate, adjusted for the period of the rate, times the principal amount.

[简答题]outward investor

[单项选择]A call option sells for $4 on a $25 stock with a strike price of $30. Which of the following statements is FALSE（　）
A. At expiration, the buyer of the call will not make a profit unless the stock’s price exceeds $30. 
B. At expiration, the writer of the call will only experience a net loss if the price of the stock exceeds $34. 
C. A covered call position at these prices has a maximum gain of $9 and the maximum loss of the stock price less the premium.

[名词解释]CALL

[单项选择]

W: Exercise, exercise, exercise. We hear so much about it these days, yet even the experts can’t agree on which exercises are best. Now some doctors are strongly encouraging arm exercises.
M: Arm exercises Is that because our arms are too fat or flabby
W: Actually, that’s not the main reason. They say that arm exercises are an ideal way to become physically fit.
M: But don’t arm exercises raise your blood pressure
W: That they do. But the article I read mentioned ways to compensate for that.
M: How
W: By adding leg exercises, so the arms don’t do all the work. Arm exercises alone aren’t enough to increase metabolism before fatigue sets in it. The more of the body that’s involved in the exercises, the better.
M: And in turn, I’m sure that there’s a great chance of losing weight.
W: Sounds right to me.
M: So what exercises do the experts recommend
W: They
A. By talking to an expert.
B. By reading an article.
C. By attending an exercise class.
D. By listening to the radio.