AssignmentQuestion.docx

Assignment Question(s):
Q1.Explain each of the following concepts as they relate to call options.
a. Delta ( 1 Mark)
b. Gamma ( 1 Mark)
c. Rho( 1 Mark)

Q2. What are the differences among scalpers, day traders, and position traders?

Q3. Assume the possible stock prices of Hull Inc. are $150, $155, $160, $165, $170, $175, and $180. The price(premium) is $5 for October165 put option of Hull Inc.
Suppose you buy one October 165 put option contract (Np=100) of Hull Inc. and hold it until the options expire.
a) Determine the profit and loss at respective stock prices of Hull Inc.
b) Determine the breakeven stock price at expiration.
c) What are the maximum possible profit and loss on this transaction.
Answers:-
1-
2-
3-
References

Q-1 Over the last few decades, the size of the foreign exchange market has increased significantly. Explain in detail the factors that has fueled this growth. Why is the US dollar the most widely used currency of quotation in the foreign exchange markets? (300 – 350 Words)

Answer
References

Q-2 Topic: “Explain the principle and features of comparative advantage. How does it relate to international trade?”. Discuss (150 – 200 words)

Answer
References

Assignment Question(s):

Q1
.Explain each of the following concepts as they relate to call options.

a. Delta

( 1 Mark)

b. Gamma

( 1 Mark)

c. Rho

( 1 Mark)

Q
2
. What

are the differences among scalpers, day traders, and position traders?

Q3
. Assume the possible stock prices

of Hull Inc.

are $150, $155, $160, $165, $170, $175, and
$180
.

The

price(premium) is $
5
for October165 put

option of Hull Inc.

Suppose you buy one October 165 put
option
contract (
Np=100)

of Hull Inc.
and

hold it
until the options expire.

a) Determine the profit

and loss

at
respective

stock prices

of Hull Inc.

b) Determine the breakeven stock price at expiration.

c) What are the maximum possible profit and loss on this
transaction.

A
nswer
s:
–

1
–

2
–

3
–

References

Assignment Question(s):
Q1.Explain each of the following concepts as they relate to call options.
a. Delta ( 1 Mark)
b. Gamma ( 1 Mark)
c. Rho ( 1 Mark)

Q2. What are the differences among scalpers, day traders, and position traders?

Q3. Assume the possible stock prices of Hull Inc. are $150, $155, $160, $165, $170, $175, and
$180. The price(premium) is $5 for October165 put option of Hull Inc.
Suppose you buy one October 165 put option contract (Np=100) of Hull Inc. and hold it
until the options expire.
a) Determine the profit and loss at respective stock prices of Hull Inc.
b) Determine the breakeven stock price at expiration.
c) What are the maximum possible profit and loss on this transaction.
Answers:-
1-
2-
3-
References