QUESTION 8 Consider the following table of trades in the 7025 call option on the...
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QUESTION 8 Consider the following table of trades in the 7025 call option on the SP1200 futures contract. Presuming the position is closed out with the requisite trade in the appropriate contract and the premium in that trade was 5.8 points per contract, in points and dollars, what was the total profit or loss from the trading, including the closing trade? Number of contracts traded Premium (points) Open Position Total Premium Received /(Paid) -100 (ie short 100 contracts) 17.6 150 (ie long 150 contracts) 21.9 -250 4.1 150 9.1 -100 20.0 a. Gain of 870.0 points, which is a profit of $43,500.00 b. Loss of 150.2 points, which is a loss of $7,250.00 Gain of 150 points, but there isn't enough information to determine the profit in dollars d. Loss of 735.0 points, which is a loss of $18,375.00
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