Is anyone working on options tonight?

CFA Level I
#1

I will be reviewing options tonight, does anyone want to join in postings and answering Q’s strictly about options for today?

#2

hmmm okies, i won’t be working on them buttt What is a protective put and and state an equivalent to it using a bond? What is the reasoning behind this logic as to why the above equations are equivalent? What type of option is equivalent to an interest rate cap and an interest rate floor? The equivalent to a FRA is comprised of a _________ and a __________? The max profit for a cover call with a premium of 5$ and the strike price 3$ above the current market value of the underlying stock?

#3

Getterdone I am revising everything more or less…so if you post some question I am more than happy to discuss it!

#4

What’s the maximum you will lose by buying a naked call? A. Infinity. B. Strike price. C. Stock price - call premium. D. Call premium.

#5

B

#6

Nope.

#7

C

#8

A

#9

A, B, C are all wrong!!!

#10

ahhh you can just let it expire!!! BOOOOO!!!

#11

D. I looked at the answers, but honest to god, i’d select D for this. if you just buy a call, the most you can lose is your cost price. that’s it. you have no obligation etc on naked call.

#12

I made up the extra choices to confuse you, but hopefully real exam questions aren’t that mean :slight_smile:

#13

Dreary Wrote: ------------------------------------------------------- > I made up the extra choices to confuse you, but > hopefully real exam questions aren’t that mean :slight_smile: heh, Dreary, do you agree that by making up the questions, the concepts go in deep in your head?

#14

Question 2: Maximum loss when buying a naked put, and when writing a naked put are: ==buying naked put === writing naked put A. Premium === premium B. Stock price - strike === Premium C. Premium === strike price - premium D. strike price === Infinity 5 minutes

#15

C

#16

Excellent…this is a little harder than the other ones.

#17

C, easy. cuz of elimination and of my MASSIVE LOSSES ACCUMULATED IN OPTIONS TRADING!!

#18

lol too funny, I am still paying off student loans (only 22) and haven’t been able to trade for myself yet. Hopefully sooN!

#19

good pepp, so your losses are finally paying off?

#20

C