<1>. What is the break-even point at expiry of a short 12,000 Hang Seng Index (HSI) call option if the premium is 60 points? 11,940 points. 12,000 points. C В 12,060 points. 12,160 points.
<1>. What is the break-even point at expiry of a short 12,000 Hang Seng Index (HSI) call option if the premium is 60 points? 11,940 points. 12,000 points. C В 12,060 points. 12,160 points.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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<1>.
What is the break-even point at expiry of a short 12,000 Hang Seng Index (HSI) call
option if the premium is 60 points?
11,940 points.
12,000 points.
12,060 points.
12,160 points.
A
What are derivative warrants?
Call options over shares to be issued by the underlying company at some time in
the future.
Either call or put options issued by a bank over existing shares.
Either call or put options issued by the underlying company over existing
shares.
B
Similar to options but requiring physical delivery.
What does the trader expect the market price to do if he/she has bought an
Cong Inder call option AND sold a Mini-Hang Seng Index
<3>.
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