FIN 560 Week 6 Homework ES
1. TCO G) An American put option gives its holder the right to _____.
2. (TCO G) You buy a call option and a put option on General Electric. Both the call option and the put option have the same exercise price and expiration date. This strategy is called a _____.
3. (TCO G) An investor purchases a long call at a price of $2.50. The expiration price is $35.00. If the current stock price is $35.10, what is the break-even point for the investor?
4. (TCO G) Which one of the following contracts requires no cash to change hands when initiated?
5. Probably the most active forward market is for _____.