[学习资料] 期货与期权市场基本原理( 第9版）约翰·赫尔 课后习题答案 [推广有奖]

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PracticeQuestions

Problem1.8.

Suppose you own 5,000 shares that areworth $25 each. How can put options be used to provide you with insuranceagainst a decline in the value of your holding over the next four months?

You should buy 50 put option contracts (each on 100 shares) with a strike priceof $25 and an expiration date in four months. If at the end of four months thestock price proves to be less than $25, you can exercise the options and sellthe shares for $25 each.

Problem1.9.

A stock when it is first issued providesfunds for a company. Is the same true of an exchange-traded stock option?Discuss.

An exchange-traded stock option provides no funds for the company. It is asecurity sold by one investor to another. The company is not involved. Bycontrast, a stock when it is first issued is sold by the company to investorsand does provide funds for the company.

Problem1.10.

Explain why a futures contract can beused for either speculation or hedging.

If an investor has an exposure to the price of an asset, he or she can hedgewith futures contracts. If the investor will gain when the price decreases andlose when the price increases, a long futures position will hedge the risk. Ifthe investor will lose when the price decreases and gain when the priceincreases, a short futures position will hedge the risk. Thus either a long ora short futures position can be entered into for hedging purposes.

If the investor has no exposure to theprice of the underlying asset, entering into a futures contract is speculation.If the investor takes a long position, he or she gains when the asset’s priceincreases and loses when it decreases. If the investor takes a short position,he or she loses when the asset’s price increases and gains when it decreases.

Problem1.11.

A cattle farmer expects to have 120,000pounds of live cattle to sell in three months. The live-cattle futures contracton the Chicago Mercantile Exchange is for the delivery of 40,000 pounds ofcattle. How can the farmer use the contract for hedging? From the farmer’sviewpoint, what are the pros and cons of hedging?

The farmer can short 3 contracts that have 3 months to maturity. If the priceof cattle falls, the gain on the futures contract will offset the loss on thesale of the cattle. If the price of cattle rises, the gain on the sale of thecattle will be offset by the loss on the futures contract. Using futurescontracts to hedge has the advantage that it can at no cost reduce risk toalmost zero. Its disadvantage is that the farmer no longer gains from favorablemovements in cattle prices.