Writing Homework Help
Feature Between Futures and Option Contracts Accounting Worksheet
Please answer the following question. Please answer briefly
1) You bought an S&P500 Index put option with an exercise price of $593.00 two weeks ago, with a premium of $1.50. The option expires today and the price of the index was $595.
(A) Would you be excersing this option? Why or why not?
(B) What would be your payoff?
(C) What would be your profit/loss?
2)Briefly compare futures and option contracts:
A. Name one similarity in feature between futures and option contracts.
B. Name two main differences in feature between futures and option contracts.