AssignmentQuestion.docx

Assignment Question(s):

Q1.Explain each of the following concepts as they relate to call options.

a. Delta ( 1 Mark)

b. Gamma ( 1 Mark)

c. Rho( 1 Mark)

Q2. What are the differences among scalpers, day traders, and position traders?

Q3. Assume the possible stock prices of Hull Inc. are $150, $155, $160, $165, $170, $175, and $180. The price(premium) is $5 for October165 put option of Hull Inc.

Suppose you buy one October 165 put option contract (Np=100) of Hull Inc. and hold it until the options expire.

a) Determine the profit and loss at respective stock prices of Hull Inc.

b) Determine the breakeven stock price at expiration.

c) What are the maximum possible profit and loss on this transaction.

Answers:-

1-

2-

3-

References

Q-1 Over the last few decades, the size of the foreign exchange market has increased significantly. Explain in detail the factors that has fueled this growth. Why is the US dollar the most widely used currency of quotation in the foreign exchange markets? (300 – 350 Words)

Answer

References

Q-2 Topic: “Explain the principle and features of comparative advantage. How does it relate to international trade?”. Discuss (150 – 200 words)

Answer

References

Assignment Question(s):

Q1

.Explain each of the following concepts as they relate to call options.

a. Delta

( 1 Mark)

b. Gamma

( 1 Mark)

c. Rho

( 1 Mark)

Q

2

. What

are the differences among scalpers, day traders, and position traders?

Q3

. Assume the possible stock prices

of Hull Inc.

are $150, $155, $160, $165, $170, $175, and

$180

.

The

price(premium) is $

5

for October165 put

option of Hull Inc.

Suppose you buy one October 165 put

option

contract (

Np=100)

of Hull Inc.

and

hold it

until the options expire.

a) Determine the profit

and loss

at

respective

stock prices

of Hull Inc.

b) Determine the breakeven stock price at expiration.

c) What are the maximum possible profit and loss on this

transaction.

A

nswer

s:

1

2

3

References

Assignment Question(s):

Q1.Explain each of the following concepts as they relate to call options.

a. Delta ( 1 Mark)

b. Gamma ( 1 Mark)

c. Rho ( 1 Mark)

Q2. What are the differences among scalpers, day traders, and position traders?

Q3. Assume the possible stock prices of Hull Inc. are $150, $155, $160, $165, $170, $175, and

$180. The price(premium) is $5 for October165 put option of Hull Inc.

Suppose you buy one October 165 put option contract (Np=100) of Hull Inc. and hold it

until the options expire.

a) Determine the profit and loss at respective stock prices of Hull Inc.

b) Determine the breakeven stock price at expiration.

c) What are the maximum possible profit and loss on this transaction.

Answers:-

1-

2-

3-

References