Products & RisksPregunta 51 de 125
An investor sells 1 XYZ 30 put for a premium of 2. What is the maximum gain and the breakeven point?
a.Maximum gain unlimited; breakeven $32
b.Maximum gain $200; breakeven $32
c.Maximum gain $200; breakeven $28
d.Maximum gain $2,800; breakeven $28
Explicación
A short (written) put's maximum gain is the premium received, $200, kept if the stock stays at or above the 30 strike. Breakeven is the strike minus the premium, 30 - 2 = $28, and the maximum loss occurs if the stock falls toward zero.
Practica las 125 preguntas gratis — sin registro.
Preguntas relacionadas de este tema
- Prepayment risk in mortgage-backed securities means that:
- A warrant differs from a right in that a warrant:
- A money market instrument such as commercial paper is best described as:
- Preferred stock is generally considered more sensitive to interest rate changes than common stock because preferred:
- A collateralized mortgage obligation (CMO) is structured into tranches primarily to:
- An investor establishes a short straddle by selling 1 XYZ 50 call for 3 and selling 1 XYZ 50 put for 2. The maximum gain is:
Última revisión: · proceso editorial
Equipo Editorial de PrepPass · Verificado con FINRA Series 7 General Securities Representative Exam · Cómo revisamos