Pictures Flashcards
Which statement would be correct if current share price is 95?
A
A put would be out-of-the-money
B
A call would be in-the-money
C
A put would be in-the-money
D
A call would be out-of-the-money
A call would be in-the-money,
This is the profit/loss of the writer of a call option. The writer’s maximum gain is crystallised at 80 showing that this is the option strike. This means that the holder of the option would have the right to buy at 80 when the market is 95 meaning the holders option is in-the-money.
Which statement would be correct if current share price is 85?,
A
A put would be out-of-the-money
B
A call would be in-the-money
C
A put would be in-the-money
D
A call would be out-of-the-money
A put would be in-the-money,
This is the profit/ loss of the holder of a put option. The holder’s maximum loss is crystallised at 90 showing that this is the option strike. This means that the holder of the option would have the right to sell at 90 when the market is 85 meaning the holders option would be in-the-money.
what are the main commodities exchanges
what are some examples of agricultural, dairy, livestock, softs
what are some of the major uses of the metals: copper, aluminium, zinc, nickel, lead, tin, gold and silver
what are crude oil and natural gas used for
what is the baltic dry index
freight index (hedge against cost of transportation)
