Hello,I need help with this 2 questions asap. Thank you.
Hello,I need help with this 2 questions asap.
Thank you.
ATTACHMENT PREVIEW Download attachment1. Suppose John short sells (=writes) Apple put option to Mary. Is this identical to Johnbuying Apple call option from Mary? Please explain in detail why they are the same ordifferent.2. A company enters into 5 long January futures contracts of wheat. The contract size ofthe wheat futures is 1,000 bushels and the current futures price is $3.00 per bushel. Theinitial margin requirement is $0.60 per bushel and the maintenance margin is $0.40 perbushel.a. How much wheat does the company agreeing to buy/short in January?b. How much cash does the company have to deposit to its margin account initially?c. If futures price becomes $3.30 per bushel (10% increase), calculate the cumulativegain.d. Calculate the rate of return when futures price becomes $3.30. (Hint: use answers to band c.)