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# der_p1_ans - Basic Derivative Problems 1(Answers are in red...

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Basic Derivative Problems (Answers are in red) 1. Select the family member who is offering the most diversification to the rest of the family. A. Dad works for General Motors B. Mom works for Goodyear C. Daughter works for Jiffy Lube D. Son works for Eli Lilly & Company 2. Assume that you purchase 100 shares of Jiffy, Inc. common stock at the bid-ask prices of \$32.00-\$32.50. When you sell the bid-ask prices are \$32.50-\$33.00. If you pay a commission rate of 0.5%, what is your profit or loss? 3. Assume that you open a 100 share short position in Jiffy, Inc. common stock at the bid-ask price of \$32.00–\$32.50. When you close your position the bid-ask prices are \$32.50–\$33.00. If you pay a commission rate of 0.5%, calculate your profit or loss on the short investment.

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der_p1_ans - Basic Derivative Problems 1(Answers are in red...

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