1- If a writer sells a put option with a strike price of $70 at $3 per share, what is her net profit or loss if the underlying stock at expiration is selling at $72?
a. $5 per share
b. $3 per share
c. $1 per share
d. -$5 per share
2-You buy 500 shares of BHC stock at $80 a share on margin. The initial margin is 50% and the maintenance margin requirement is 30%. If the stock price drops to $60, what will be the actual margin in your account?
a. 67%
b. 50%
c. 33%
d. 25%