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34 Cards in this Set

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XBP June 170 call @ 2.14
prem?
strike (how many USD for 1 BP?)
prem= 0.0214 x x 31250 = $668.75

strike= $1.7 USD / 1 BP
XJY Dec 98 call @ 1.20
prem?
strike?
prem= 6250000 x x.00012 = $750

strike= $0.0098 UDS / 1 Yen
SF Sep 76 call
cost to exercise?
62500 x .76 = $47500
uncovered currency option margin req OTM
4% underlying + premium - OTM

or

3/4% underlying + premium
uncovered currency option margin req ITM

also, what is the deposit req?
margin = 4% underlying + premium

deposit = 4% underlying
margin req. uncovered index option (narrow) OTM
20% underlying + premium - OTM

or

10% + premium
margin req. uncovered index option (broad based)
15% + premium - OTM

or

10% + premium
margin req. uncovered index option (narrow). ATM or ITM
20% + premium
margin req. uncovered index option (broad based). ITM, ATM.
15% + premium
If 1 CD = 80 cents

Then 1 USD = CD?
1/.80 = 1.25 CD
throught the PHLX:
XAD increments?
XBP
XCD
XAD 50000
XBP 31250
XCD 50000
through the PHLX:
ECU increments?
XJY
XSF
ECU 62500
XJY 6250000
XSF 62500
premium on a currency option.
If the premium changes by 0.01,
Then by how many $ does the premium change?

for AD, BP, CD, EU, SF, or Yen?
AD = $5 (50000 x 0.0001 = 5)
BP = 3.125
CD = 5
EU = 6.25
SF = 6.25
Yen= 6.25
margin req. interest rate options. uncovered OTM.

T-Bill
0.35% underlying + premium - OTM

or

.05% underlying + premium

(note: 1,000,000 x .0005 = $500)
margin req. Interest rate options. uncovered, OTM

T-Note
3% underlying + premium - OTM

or

0.50% underlying + premium

(note: 0.5% = $500, 3% = $3000)
margin req. uncovered interest rate option. OTM

T-Bond
3.5% underlying + premium - OTM

or

.50% underlying + premium


(Note: .5% = 500, 3.5% = 3500)
interest rate option.
T-Note option premium of 3.24 = ?
3.24 = 3 24/32% x 100000 = $3750
interest rate options.
underlying amounts for

bill
note
bond
bill = 1,000,000
note = 100000
bond = 100000
interest rate options
contracts trade in what increments?
50 bp
interest rate options
1 pb = USD
$25
interest rate options
prem of 1 = USD?
prem 1 = 100 bp
1 bp = $25

prem 1 = 100 x $25 = $2500
interest rate options.
prem of 1.35 = USD?
prem of 1 = 100 bp
1 bp = $25

prem 1.35 = 135 x 25 = $3375
T-Note/T-Bond is traded where?
ASE, CBOE
interest rate options.
premium for contract.
which one trades in different increments?

for that issue, 1.16 = USD?
T-Bond quote

1.16 = 1 16/32% x 100000 = $1500
interest rate options
T-Bond
prem 4.04 = USD?
4 4/32% x 100000 = $4125
equity options. margin req?
long Jun 20 call (2005)
short Nov 25 call (2004)
zero
equity option. margin req? deposit req?
short XYZ Mar 25 call @1
XYZ @ 20
OTM option.
2000 x .2 = 400, 1 x 100 = 100
OTM = 5 x 100 = 500
500 - 500 = zero
or
2000 x .1 = 200, 1 x 100 = 100
200 + 100 = 300

margin is $300. deposit is $200.
equity option. margin req? deposit req?
short XYZ Apr 50 put @ 12.25. XYZ @ 40.
4000 x .2 = 800, 12.25 x 100 = 1225

margin = $2025

deposit = $800
interest rate option. margin req? deposit req?
uncovered T-Bill @ 1.60. strike 87. market = 87.
ATM contract.
160 x 25 = 4000, .35% underlying = 3500

margin = $7500

deposit = $3500
interest rate option. margin req? deposit req?

T-Bond call option. uncovered Sep 96 call @ 6.24. T-Bond @ 98.
6 24/32% x 100000 = 6750
3.5% underlying = 3500

margin = 10250

deposit = 3500
currency option. sold uncovered CD Sep 80 call @ 1.40. spot rate is 0.8060. call is assigned. profit or loss?
50000 CD for each contract

sell call = 50000 x 0.014 = $700
buy CD = 50000 x 0.8060 = $40300
sell CD, assignment = 50000 x .8 = 40000

700 + 40000 - 40300 = 400
profit $400
currency option. margin req? deposit req?
buy Dec 46 SF @ 0.34, spot rate 0.4980, exercise call. profit or loss?
SF = 62500
buy call, 62500 x .0034 = 212.50
exercise call, 62500 x .46 = 28750
sell at spot, 62500 x .498 = 31125

31125 - 212.5 - 28750 = 2162.5
profit $2162.50
synthetic positions
call =
long call = long stock + long put
write a call in a CASH account. what do you need to to write the call?
1. underlying stock
or
2. escrow receipt from a bank for stock being held in account