QUESTION 8 Consider the following table of trades in the 7025 call option on the SP1200...

 

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QUESTION 8 Consider the following table of trades in the 7025 call option on the SP1200 futures contract. Presuming the position is closed out with the requisite trade in the appropriate contract and the premium in that trade was 5.8 points per contract, in points and dollars, what was the total profit or loss from the trading, including the closing trade? Number of contracts traded Premium (points) -100 (ie short 100 contracts) 150 (ie long 150 contracts) -250 150 -100 a. Gain of 870.0 points, which is a profit of $43,500.00 17.6 21.9 4.1 9.1 20.0 b. Loss of 150.2 points, which is a loss of $7,250.00 OC. Gain of 150 points, but there isn't enough information to determine the profit in dollars Od. Loss of 735.0 points, which is a loss of $18,375.00 Open Position Total Premium Received/(Paid) QUESTION 8 Consider the following table of trades in the 7025 call option on the SP1200 futures contract. Presuming the position is closed out with the requisite trade in the appropriate contract and the premium in that trade was 5.8 points per contract, in points and dollars, what was the total profit or loss from the trading, including the closing trade? Number of contracts traded Premium (points) -100 (ie short 100 contracts) 150 (ie long 150 contracts) -250 150 -100 a. Gain of 870.0 points, which is a profit of $43,500.00 17.6 21.9 4.1 9.1 20.0 b. Loss of 150.2 points, which is a loss of $7,250.00 OC. Gain of 150 points, but there isn't enough information to determine the profit in dollars Od. Loss of 735.0 points, which is a loss of $18,375.00 Open Position Total Premium Received/(Paid)

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The correct answer is b Loss of 1502 points which is a loss of ... View the full answer