Suggest two areas where the use of futures contracts are
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1. Suggest two areas where the use of futures contracts are most common. What percent of the value of the underlying security is typical as a down payment in a futures contract?
2. You buy a stock option with an exercise price of $50. The cost of the option is $4. If the stock ends up at $56, indicate whether you have a profit or loss with a call option? With a put option?
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1. Two areas of common futures contracts are gold and currency. To minimize credit risk to the exchange, traders must post margin or down payment, typically 5%-15% of the contract's value.
2. Options take many ...
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