[teresa1014]

Hi, I have applied the membership on 13th April and received the confirmation on 15th April.
I have to pay the membership admission fee, do I need to pay the membership annual fee during this year?

[teresa1014]

Thank you sir!

[teresa1014]

Thank you sir.
I should read the requirement of the question more carefully.

[teresa1014]

Thank you so much for your clear explanation sir!

[teresa1014]

Maybe I got the reason.
The benefit of exercising sell options is opposite to buy options.
The objective of exercising buy options is to gain on exercise but need to pay premium.
But sell options is to receive the premium but will loss on exercise.

Hope my understanding is correct.

[teresa1014]

Dear sir

Thank you for your reply.

I understand when hedging by options, Massie buy call as they deposit the money. And I have not got any mistake in this part as I have watched the lectures.

However, if using a collar, they buy calls at 97.00 and sell put at 96.50. If interest rates increase to 4.1% (future price 95.74), they will not exercise call but will exercise put. (I understand why they do not exercise call options)
The answer states that it is a loss 95,000 on exercising the put, but I do not understand why there is a loss.

Thank you.

[teresa1014]

Dear sir,

If I divide by 1.1204 (6-month expiry futures price) instead of lock in rate, I also got 46 contracts. Is it correct or not?

Thank you!

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