Question 1. \ufffd Question : \ufffd\u00a0\u00a0 (TCO A) An order that closes an existing position is called a(n) ______.\t\u00a0\tQuestion 2. \ufffd Question : \ufffd\u00a0\u00a0 (TCO A) Which of the following is not a characteristic of a short call position?\t\u00a0\tQuestion 3. \ufffd Question : \ufffd\u00a0\u00a0 (TCO E) The owner of a call that expires in the money (ignore cash settlement options) ________.\t\u00a0\tQuestion 4. \ufffd Question : \ufffd\u00a0\u00a0 (TCO C) For tax purposes, futures contracts are assumed to be ______.\t\u00a0\tQuestion 5. \ufffd Question : \ufffd\u00a0\u00a0 (TCO C) The agency that administers the Commodity Exchange Act is ____.\t\u00a0\tQuestion 6. \ufffd Question : \ufffd\u00a0\u00a0 (TCO D) A Jan 50 call option is deep in the money when the ______.\t\u00a0\tQuestion 7. \ufffd Question : \ufffd\u00a0\u00a0 (TCO A) How many equity option exchanges exist in the United States?\t\u00a0\tQuestion 8. \ufffd Question : \ufffd\u00a0\u00a0 (TCO C) What is the tax consequence when a short call that was written more than a year ago on stock expires worthless?\t\u00a0\tQuestion 9. \ufffd Question : \ufffd\u00a0\u00a0 (TCO D) Assume that put and call options with a $50 strike price expire with the stock at $70. Which of the following statements is correct?\t\u00a0\tQuestion 10.\u00a0\u00a0\u00a0 Question : \ufffd\u00a0\u00a0 (TCO E) Assume the following:\t\u00a0\tOption\u00a0 \ufffd \ufffd Strike price\u00a0 \u00a0\u00a0\u00a0 Call price\u00a0 \ufffd\u00a0 Put price\tA \ufffd\u00a0\u00a0\u00a0 90 \ufffd\u00a0\u00a0 18 \ufffd\u00a0\u00a0 1\tB \ufffd\u00a0\u00a0\u00a0\u00a0 100 \ufffd 9 \ufffd\u00a0\u00a0\u00a0\u00a0 3\tC \ufffd\u00a0\u00a0\u00a0\u00a0 110 \ufffd 3 \ufffd\u00a0\u00a0\u00a0\u00a0 8\tD \ufffd\u00a0\u00a0\u00a0 120 \ufffd 1 \ufffd\u00a0\u00a0\u00a0\u00a0 17\t\u00a0\tWhat would a short put condor include?\t\u00a0\tQuestion 11.\u00a0\u00a0\u00a0 Question : \ufffd\u00a0\u00a0 (TCO F) What happens to gamma as expiration is approached for options that are near the money?\t\u00a0\tQuestion 12.\u00a0\u00a0\u00a0 Question : \ufffd\u00a0\u00a0 (TCO G) The first rule of the cash-and-carry relationship for futures contracts is that the futures price must be _______.\t\u00a0\tQuestion 13.\u00a0\u00a0\u00a0 Question : \ufffd\u00a0\u00a0 (TCO G) The Dow Jones Industrial Average is ______.\t\u00a0\tQuestion 14.\u00a0\u00a0\u00a0 Question : \ufffd\u00a0\u00a0 (TCO G) A fund manager who wants to buy Japanese equities now, but won’t have the cash for three months can buy a stock index futures contract as a ______.\t\u00a0\tQuestion 15.\u00a0\u00a0\u00a0 Question : \ufffd\u00a0\u00a0 (TCO F) Strangle writers prefer ______.\t\u00a0\tQuestion 16.\u00a0\u00a0\u00a0 Question : \ufffd\u00a0\u00a0 (TCO F) What is the approximate value of delta for a deep-in-the-money call?\t\u00a0\tQuestion 17.\u00a0\u00a0\u00a0 Question : \ufffd\u00a0\u00a0 (TCO F) Vega is least for options that are ______.\t\u00a0\tQuestion 18.\u00a0\u00a0\u00a0 Question : \ufffd\u00a0\u00a0 (TCO A) On which exchanges do options on futures trade?\t\u00a0\tQuestion 19.\u00a0\u00a0\u00a0 Question : \ufffd\u00a0\u00a0 (TCO D) A trader sold a Sep 50 call for $5. At expiration, the stock closed at $53. What was the net result after the trader delivered the stock?\t\u00a0\tQuestion 20.\u00a0\u00a0\u00a0 Question : \ufffd\u00a0\u00a0 (TCO B) In 1979″\ufffd1980, the Hunt brothers manipulated which market?\t\u00a0\tQuestion 21.\u00a0\u00a0\u00a0 Question : \ufffd\u00a0\u00a0 (TCO B) Which of the following is the most actively traded futures contract?\t\u00a0\tQuestion 22.\u00a0\u00a0\u00a0 Question : \ufffd\u00a0\u00a0 (TCO E) The maximum profit in a bull put spread at expiration occurs when the stock price is _______.\t\u00a0\tQuestion 23.\u00a0\u00a0\u00a0 Question : \ufffd\u00a0\u00a0 (TCO C) What is the limitation on the tax deductibility of net capital losses in one tax year?\t\u00a0\tQuestion 24.\u00a0\u00a0\u00a0 Question : \ufffd\u00a0\u00a0 (TCO D) The maximum profit in a bull call spread at expiration occurs when the stock price is _______.\t\u00a0\tQuestion 1. \ufffd Question : \ufffd\u00a0\u00a0 (TCO C) An investor bought 100 shares of stock at $40. The stock now sells for $60 and the investor writes a 65 call for $2. What is the maximum possible gain and loss in this covered call position?\t\u00a0\tQuestion 2. \ufffd Question : \ufffd\u00a0\u00a0 (TCO D) An investor bought stock at $50 and sold a covered call with a 55 strike price for $2. The stock now sells for $60.\tPart 1: What is the intrinsic value in the option? Assume the call is priced at $7.\tPart 2: What is the time value in the option?\tPart 3: What would you expect to happen to the value of the call and the 55 put if a shock to the market causes volatility to increase dramatically?\t\u00a0\tQuestion 3. \ufffd Question : \ufffd\u00a0\u00a0 (TCO E) Part 1: If you hold two XYZ Dec 60 calls and the stock splits 2 for 1, what will be your resulting position?\tPart 2: What is the gain or loss for the following long butterfly spread if the stock is at $302 at expiration?\t\u00a0\tBuy 1 Jun 300 call at 9\tSell 2 Jun 305 calls at 5\tBuy 1 Jun 310 call at 2\t\u00a0\tPart 3: Construct a bull put spread with the following options:\t\u00a0\tApr 40 put at 3\tApr 45 put at 6\t\u00a0\tShow the P\/L result over a range of 38″\ufffd47.\t\u00a0\tQuestion 4. \ufffd Question : \ufffd\u00a0\u00a0 (TCO G) What are the independent variables in the equity options pricing model?\tWhat would you expect deltas to be for an at-the-money call and an at-the-money put?\tWhy do some portfolio managers attempt to remain delta neutral?\tWhat kind of position do straddle writers plan to maintain?<\/p>\n","protected":false},"excerpt":{"rendered":"
Question 1. \ufffd Question : \ufffd\u00a0\u00a0 (TCO A) An order that closes an existing position is called a(n) ______. \u00a0 Question 2. \ufffd Question : \ufffd\u00a0\u00a0 (TCO A) Which of the following is not a characteristic of a short call Read More …<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-216970","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/216970","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=216970"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/216970\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=216970"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=216970"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=216970"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}