1. __________ requirements serve to insure the performance of futures contracts.
a. Margin
b. Experience
c. Age
d. Income
2. A put option is in the money if the strike price is __________ the market price of the underlying security.
a. less than
b. equal to
c. greater than
d. none of the above
Assume that you hold a short position in an oil futures contract at $40 per barrel and covered as the price rose to $50 per barrel, the profit/loss in your account would be __________ per barrel.
a. a loss equal to the option premium
b. $0
c. a $10 profit
d. a $10 loss