71) You own one futures contract on gold that you purchased at a quoted price of 1,448.5. The
current price quote is 1608.8. The contract size is 100 ounces and the quotes are expressed in
dollars and cents per ounce. What is your current profit or loss on this investment?
A) $160.30
B) $1,912.00
C) $8,040.00
D) $16,030.00
E) $19,120.00
72) You would like to lock in the selling price on 60,000 bushels of wheat, which you plan to
harvest and deliver to the market in September. The September futures price quote is currently
902΄6. If you write September futures contracts on your wheat, you will be guaranteed a total
price of ________ for your crop. Each contract is quoted in cents and 1/8 ths of a cent per bushel
with a contract size of 5,000 bushels.
A) $45,637.50
B) $541,650.00
C) $11,908.75
D) $297,700.50
E) $2,977,000.25
Use these option quotes to answer this question:
ZZ Industries: Price 34.36
Calls:
Strike
Symbol
Last
Chg
Bid
Ask
Vol
Open Int
30.00
ZZBF
4.30
↓0.07
4.30
4.40
62
3,429
32.50
ZZBZ
1.87
↓0.07
1.82
1.87
236
8,168
35.00
ZZBG
0.01
↓0.05
0.00
0.01
3119
38,017
Puts:
Strike
Symbol
Last
Chg
Bid
Ask
Vol
Open Int
30.00
ZZNF
0.01
0.00
0.00
0.01
0
7,258
32.50
ZZNZ
0.01
↓0.02
0.00
0.01
562
34,972
35.00
ZZNG
0.60
↓0.14
0.63
0.68
2637
19,686
73) You would like to have the right to purchase 200 shares of ZZ Industries stock at a price of
$32.50 a share. How much will it cost you to buy options to meet this objective?
A) $103.11
B) $12.90
C) $374.00
D) $430.00
E) $561.00
74) You own 700 shares of ZZ Industries stock which you purchased for $38.40 a share. You
would like to have the right to sell your shares for $35.00 a share. What will be the cost to obtain
this right?
A) $0.40
B) $0.90
C) $7.00
D) $476.00
E) $900.00
75) The 47.50 put on a stock is trading at 1.32 bid and 1.37 ask. To buy one option contract, you
must pay ________ at the time the contract is purchased.
A) $1.32
B) $132.00
C) $137.00
D) $4,613.00
E) $4,882.00
Use these option quotes to answer this question:
ZZ Industries: Price 34.36
Calls:
Strike
Symbol
Last
Chg
Bid
Ask
Vol
Open Int
30.00
ZZBF
4.30
↓0.07
4.30
4.40
62
3,429
32.50
ZZBZ
1.87
↓0.07
1.82
1.87
236
8,168
35.00
ZZBG
0.01
↓0.05
0.00
0.01
3119
38,017
Puts:
Strike
Symbol
Last
Chg
Bid
Ask
Vol
Open Int
30.00
ZZNF
0.01
0.00
0.00
0.01
0
7,258
32.50
ZZNZ
0.01
↓0.02
0.00
0.01
562
34,972
35.00
ZZNG
0.60
↓0.14
0.63
0.68
2637
19,686
76) You want to sell four call option contracts on ZZ Industries stock at a strike price of $32.50 a
share. How much will you receive in option premiums if you place this order today?
A) $300
B) $1,290
C) $1,320
D) $728
E) $546
77) You want the right, but not the obligation, to sell 400 shares of ZZ Industries stock at a price
of $32.50 a share. How much will it cost you to establish this option position?
A) $3.50
B) $4.00
C) $3.60
D) $3.78
E) $3.82
78) You purchased four call option contracts with a strike price of $40 and an option premium of
$1.25. You closed your contract on the expiration date when the stock was selling for $42.50 a
share. What is your total profit or loss on your option position?
A) -$50
B) -$10
C) $135
D) $385
E) $500
79) You purchased three call option contracts with a strike price of $22.50 and an option
premium of $0.45. You held the option until the expiration date. On the expiration date, the stock
was selling for $21.70 a share. What is the total profit or loss on your option position?
A) -$45
B) $0
C) -$240
D) -$120
E) -$135
80) You bought six call option contracts with a strike price of $25.00 and a premium of $0.45. At
expiration, the stock was selling for $23.75 a share. What is the total profit or loss on your option
position if you did not exercise it prior to the expiration date?
A) -$9.24
B) -$10.20
C) $0
D) -$270
E) -$450
81) You bought five call option contracts with a strike price of $47.50 and an option premium of
$1.20. At expiration, the stock was selling for $51.30 a share and you exercised your option.
What is your total cost basis in the acquired shares?
A) $23,150
B) $25,050
C) $23,750
D) $24,350
E) $26,250
82) You purchased four call option contracts with a strike price of $25.00 and a premium of
$1.25. At expiration, the stock was selling for $26.80 a share. What is the total amount it cost
you to acquire your shares?
A) $8,620
B) $9,060
C) $10,500
D) $11,860
E) $12,400
83) You purchased four put option contracts with a strike price of $35 and a premium of $0.80.
What is the total net amount you will receive for your shares if you exercise this contract when
the underlying stock is selling for $31.50 a share?
A) $13,680
B) $14,700
C) $15,740
D) $16,340
E) $16,400
84) You purchased six put option contracts with a strike price of $30 and a premium of $0.90. At
expiration, the stock was selling for $26.80 a share. What is the total net amount you received for
your shares, assuming that you disposed of your shares on the expiration date?
A) $17,955
B) $17,460
C) $17,045
D) $17,815
E) $17,160
85) You bought a put option contract with a strike price of $37.50 and a premium of $1.80. At
expiration, the stock was selling for $35 a share. What is the net total amount you received for
your shares assuming that you disposed of your shares on the expiration date?
A) $3,680
B) $3,930
C) $3,570
D) $3,330
E) $3,320
86) You purchased 500 shares of SLG, Inc. stock at a price of $43.70 a share. You then
purchased put options on your shares with a strike price of $40.00 and an option premium of
$0.90. At expiration, the stock was selling for $47.80 a share. You sold your shares on the option
expiration date. What is your net profit or loss your transactions related to SLG, Inc. stock?
A) $1,650
B) $1,250
C) $1,600
D) $2,150
E) $2,300
87) You own 300 shares of stock which you would like to have the right to sell at $40 a share.
The 40 call option is quoted at $0.35 bid, $0.40 ask. The 40 put is quoted at $0.45 bid, $0.50 ask.
How much will it cost you to obtain the right to sell all of your shares at $40 a share?
A) $135
B) $50
C) $150
D) $105
E) $75
88) Alicia owns 500 shares of Danube stock. She thinks the market price will continue to rise but
would like to ensure that she can get at least $47.50 a share should she decide to sell her shares.
The 47.50 call option is quoted at $1.05 bid, $1.15 ask. The 47.50 put is quoted at $0.80 bid,
$0.85 ask. How much will it cost her to ensure that she can sell all of her shares for at least
$47.50 each?
A) $805
B) $740
C) $670
D) $530
E) $425
89) A 3.5 percent coupon bond is currently quoted at 91.3 and has a face value of $1,000. What
is the amount of each semi-annual coupon payment if you own three (3) of these bonds?
A) $52.50
B) $75.00
C) $100.46
D) $110.00
E) $200.93
90) Jay owns 500 shares of Baker stock. What is the current value of his shares?
A) $26,605
B) $28,820
C) $29,640
D) $39,050
E) $40,350
91) A pension fund purchased 15 round lots of Aldridge Inc. stock at the closing price of the day
yesterday. What was the cost of that purchase?
A) $4,410
B) $5,205
C) $52,050
D) $71,200
E) $86,800
92) You own one futures contract on gold that you purchased at a quoted price of 1,448.5. The
current price quote is 1405.5. The contract size is 100 ounces and the quotes are expressed in
dollars and cents per ounce. What is your current profit or loss on this investment?
A) -$43.00
B) -$912.00
C) -$4,300.00
D) $912.00
E) $4,300.00
93) You want the right, but not the obligation, to sell 300 shares of ZZ Industries stock at a price
of $30.00 a share. How much will it cost you to establish this option position?
A) $3.00
B) $3.20
C) $3.60
D) $3.78
E) $3.82
94) You purchased eight put option contracts with a strike price of $30 and a premium of $1.10.
What is the total net amount you will receive for your shares if you exercise this contract when the
underlying stock is selling for $26.50 a share?
A) $23,120
B) $24,700
C) $25,740
D) $26,340
E) $26,400