Suppose the price of gold in the spot market is $1,830 and the price of a put option on gold futures with a strike price of $1,840 is $55 (all prices are per ounce) .If you exercise this put option,you get:
A) $10 and a long position in gold futures
B) $45 and a long position in gold futures
C) $10 and a short position in gold futures
D) $30 and a short position in gold futures
E) $45 and a short position in gold futures
Correct Answer:
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Q1: The following was NOT associated with Russell
Q3: Buyers of options maturing in more than
Q4: Many major developments took place in the
Q5: For computing position limits,the following positions are
Q6: Option contracts did NOT trade in:
A) seventeenth-century
Q7: Regular equity options that expire each month
Q8: Market manipulation cases involving options do NOT
Q9: During the nineteenth and early twentieth century,futures
Q10: The primary function of the Options Clearing
Q11: Regular equity options that expire each month
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