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Suppose that a September put option with a strike price of $65 costs $5.5.  Under what circumstances will the holder of the option earn a profit? Let S equal the price of the underlying.

Suppose that a September put option with a strike price of $110 costs $5.0. Under what circumstances will the seller (or writer) of the option earn a profit? Let S equal the price of the underlying.

Suppose that a September put option with a strike price of $50 costs $14. 5. Under whatcircumstances will the holder of the option earn a profit? Let S equal the price of theunderlying.

Modern Portfolio Managers (MPM) hold a 2.5 million dollar portfolio of stocks with abeta of 0.95 measured with respect to the S&P 500 index. The current value of a futurescontract on the index is 1109. 3. The multiplier on the futures equals $250. If MPM wishesto increase its systematic risk in its portfolio to 1. 75, how many contracts must it buy orsell?

An investor enters into a long oil futures contract when the futures price is $18.75 perbarrel. The contract size if 100 barrels of oil. How much does the investor gain or lose ifthe oil price at the end of the contract equals $16. 75?

An investor receives $1036.0 in 2.0 weeks for an initial investment of $1000.0. What isannual percentage return with continuous compounding?

An investor enters into a short oil futures contract when the futures price is $18.0 perbarrel. The contract size if 100 barrels of oil. How much does the investor gain or lose ifthe oil price at the end of the contract equals $19.75

Suppose that a September put option with a strike price of $135 costs $7.0. Under whatcircumstances will the holder of the option earn a profit? Let S equal the price of theunderlying.

Suppose that a September put option with a strike price of $130 costs $12.0. Under whatcircumstances will the holder of the option earn a profit? Let S equal the price of theunderlying.

Suppose you enter into a long position to buy March Gold for $340 per ounce. Thecontract size is 100 ounces, the initial margin is $3400 and the maintenance margin is$1360. At what price will you receive a margin call?