Series 3: Exercise

Taken from our Series 3

Exercise

For each of the following options quotes, fill in the blanks. note that both corn and wheat contracts are 5,000 bushels.

  1. 1. Long DEC Wheat 442’4 Call @ 10’0

Premium: _____ _____

Breakeven point: _____

Maximum gain: _____

Maximum loss: _____

  1. 2. Short DEC Wheat 462’2 Call @ 12’0

Premium: _____ _____

Breakeven point: _____

Maximum gain: _____

Maximum loss: _____

  1. 3. Short Sep Corn 322’4 Put @ 15’0

Premium: _____ _____

Breakeven point: _____

Maximum gain: _____

Maximum loss: _____

  1. 4. Long Sep Corn 336’6 Put @ 14’2

Premium: _____ _____

Breakeven point: _____

Maximum gain: _____

Maximum loss: _____

Answers

  1. 1. Premium: Paid; $500

Breakeven point: 452’4 ($4.5250)

Maximum gain: Unlimited

Maximum loss: $500

  1. 2. Premium: Received; $600

Breakeven point: 474’2 ($4.7425)

Maximum gain: $600

Maximu

Since you're reading about Series 3: Exercise, you might also be interested in:

Solomon Exam Prep Study Materials for the Series 3
Please Enable Javascript
to view this content!