Violation of the exchanges position limit

Assignment Help Financial Management

Reference no: EM131318791

The following are four customer accounts.

1. Long 70,000 March XYZ calls and long 6,000 March XYZ puts

2. Long 70,000 March XYZ calls and long 6,000 July XYZ calls

3. Long 70,000 March XYZ calls and short 6,000 July XYZ calls

4. Long, 70,000 March XYZ calls and short 6,000 March XYZ puts

Which accountd are in violation of the exchanges position limit which is equal to 75,000 contracts for XYZ? Please explain

Reference no: EM131318791

Questions Cloud

Treasury bond-what is the bond yield to maturity : A Treasury bond that settles on August 10, 2013, matures on February 23, 2021. The coupon rate is 7.00 percent and the quoted price is 117:15. What is the bond’s yield to maturity?

What is the ytm and the current yield : Rolling Company bonds have a coupon rate of 4.00 percent, 14 years to maturity, and a current price of $1,086. What is the YTM? The current yield?

Valuing bonds and treasury bonds : Treasury Bonds- Is it true that a U.S. Treasury security is risk-free? Valuing Bonds- Even though most corporate bonds in the United States make coupon semiannually, bonds issued elsewhere often have annual coupon payments.

Issues zero coupon bonds on the market : Atlantis Fisheries issues zero coupon bonds on the market at a price of $438 per bond. These are callable in 6 years at a call price of $630. Using semiannual compounding, what is the yield to call for these bonds? (Do not round intermediate calculat..

Violation of the exchanges position limit : The following are four customer accounts. Which accountd are in violation of the exchanges position limit which is equal to 75,000 contracts for XYZ? Please explain

What is the firm after-tax component cost of debt : Bond Yield and After-Tax Cost of Debt A company's 7% coupon rate, semiannual payment, $1,000 par value bond that matures in 20 years sells at a price of $638.55. The company's federal-plus-state tax rate is 40%. What is the firm's after-tax component..

Calculate the next expected dividend per share : Cost of Equity Radon Homes's current EPS is $6.16. It was $4.07 5 years ago. The company pays out 55% of its earnings as dividends, and the stock sells for $34. Calculate the historical growth rate in earnings. Calculate the next expected dividend pe..

What was most recent dividend per share paid on stock : Teder Corporation stock currently sells for $40 per share. The market requires a 14 percent return on the firm's stock. If the company maintains a constant 7 percent growth rate in dividends, what was the most recent dividend per share paid on the st..

Bill plans to open self-serve grooming center in storefront : Bill plans to open a self-serve grooming center in a storefront. The grooming equipment will cost $480,000, to be paid immediately. Bill expects aftertax cash inflows of $103,000 annually for eight years, after which he plans to scrap the equipment a..

User Account

All Pages