A customer is short 100 shares of DFI at 35 and the market price is 35.25. If he believes a near-term rally will occur, which of the following strategies would best hedge his position?
A) Write a DFI put with an exercise price of 40. B) Buy a DFI call with an exercise price of 40. C) Buy a DFI call with an exercise price of 35. D) Write a DFI call with an exercise price of 40.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “A customer is short 100 shares of DFI at 35 and the market price is 35.25. If he believes a near-term rally will occur, which of the ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Short Inc has 5,200 machine hours available each month. The following information on the company's three products is available: Product 1 Product 2 Product 3 Contribution margin per unit $ 45.00 $ 54.00 $ 22.
Answers (1)
On the first day of the current fiscal year, $1,500,000 of 10-year, 8% bonds, with interest payable semiannually, were sold for $1,225,000. Present entries to record the following transactions for the current fiscal year: a. Issuance of the bonds.
Answers (1)
Which of the following is an example of a way to search for jobs on the open job market? Check all that apply. Work colleagues Niche sites Alumni groups Mobile apps Social networks
Answers (1)
On July 1, 2015, Allen Company signed a $100,000, one-year, 6 percent note payable. The principal and interest will be paid on June 30, 2016.
Answers (1)
Lists two things that both increase the money supply?
Answers (1)
New Questions in Business
Suppose you have a choice of working full-time during the summer or attending summer school full-time. Summer tuition and books are $3,000. If you worked, you could make $5,000. Your rent is $1,000 for summer, regardless of your choice.
Answers (1)
Which phrase defines complementary goods
Answers (1)
If a company's current assets increase, what might we assume about their inventory levels? a) It increasedb) It decreasedc) It stayed the samed) We don't have enough information to decide
Answers (1)
What is the effect of import restrictions on prices? a. they cause prices to drop. b. they cause prices to rise. c. they often cause prices to rise steeply and then drop. d. they usually do not have any lasting effect on price?
Answers (1)
Joan is a manufacturing engineer who works on a new product development team along with members from design, engineering, production, purchasing, finance, marketing, and quality assurance.
Answers (2)