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Bubba buys one XYZ June 40 call for $1,000 and sells one XYZ March 40 call for $600. Subsequently, the June call is closed for $1,200 and the March call for $900.
What is Bubba's net result?
Suggested Answer: A
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$100 profit. The long position in the June call is a $200 profit ($1,200 - $1,000). The short position in the March call is a $300 loss ($900 - $300). Combining the gain and loss results in a $100 loss.
12 comments · newest first
TY
Tyisha
1 year ago
Definitely a win for Bubba!
DO
Donte
1 year ago
Wait, are we sure about those numbers?
HE
Heike
1 year ago
Sounds like a $100 profit to me!
TR
Tracey
1 year ago
He sold the March call for $600 and closed it for $900.
AL
Alease
1 year ago
Bubba spent $1,000 on the June call and made $1,200.
DA
Dannette
1 year ago
I'm a bit confused about the closing prices. Did we factor in the initial premiums correctly? I hope I remember the math right!
TH
Theron
1 year ago
I think we need to look at the initial costs and the closing amounts. If I recall correctly, the June call was a gain, but the March call was a loss.
TI
Titus
1 year ago
I remember something about calculating the net result by subtracting the total costs from the total revenues, but I'm not entirely sure how to apply it here.
LA
Lai
1 year ago
I practiced a similar question where we had to calculate profits and losses from options trades. I think the key is to add the gains and losses correctly.
AM
Amos
1 year ago
This seems like a straightforward question about the FATF's mutual evaluations. I think the key is to focus on the wording of the question and the answer choices.
TI
Timothy
1 year ago
This seems like a straightforward question about HR profiles. I think the answer is probably A - personal employee data, since that's the kind of information typically found in an HR profile.
MA
Mammie
1 year ago
This seems like a straightforward question about Cisco's security threat detection time. I'll review the options carefully and go with the one that best matches the information provided.