S3 Options on Futures

Question 1

What to do for MAXIMUM profit potential?

Answer 1

BUY options

Question 2

What to do for INCOME to increase?

Answer 2

SELL options

Question 3

Is LONG HEDGE bullish or bearish?

Answer 3

Bullish

Question 4

Is SHORT HEDGE bullish or bearish?

Answer 4

Bearish

Question 5

Can U be UNDEr hedged?

Answer 5

Never: hedged or overhedged is OK

Question 6

What is the reason for posting margin?

Answer 6

Show good faith on meeting the obligation to buy/sell futures cotract

Question 7

How much is 1.00 point in the SP500?

Answer 7

$250

Question 8

How to determine the Premium to pay/receive on Index futures?

Answer 8

Premium x $250

Question 9

How much is 1.00 point in Bonds?

Answer 9

$1000

Question 10

How much is 1/64 of a point in Bonds?

Answer 10

$15.625

Question 11

How to calculate premium to pay/receive on Bonds?

Answer 11

Separate number by the dash and X each by its corresponding points ($1000 - $15.625)

Question 12

What is 1.00 point in Gold futures?

Answer 12

$100

Question 13

What is 0.01 point in gold futures?

Answer 13

$1

Question 14

How much is 1.00 point in sugar futures?

Answer 14

$1120

Question 15

Synthetic Long Put

Answer 15

Short Fututres / Long Call

Question 16

Synthetic Long Call

Answer 16

Long Futures / Long Put

Question 17

Synthetic Long Future

Answer 17

Long Call / Short Put

Question 18

Synthetic Short Future

Answer 18

Short Call / Long Put