You have a long position in a stock that you purchased for $100,and a short position in a put option on the same stock at strike K = 100.At maturity the stock price is $95,and you liquidate your stock and option positions.Your gross payoff (cash flow) is
A) $0
B) $5
C) $90
D) $95
Correct Answer:
Verified
Q2: A call option with a strike of
Q3: You anticipate that volatility will increase sharply
Q4: You sold a call option at strike
Q5: The premium of an option is
A)The price
Q6: If you expect stock volatility to fall
Q7: Which of the following statements is true
Q8: For a call and a put written
Q9: You have $100 to invest.You can invest
Q10: The largest markets for derivatives based on
Q11: You have a portfolio with long positions
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