Alternative trading venues/systems trade stocks that are not traded on recognized stock exchanges.
Market makers quote both buy and sell prices for stocks.
All brokers trade for their own account.
7. The writer of an equity option has the obligation to sell a stock at a specified price in future. What type of option position is this?
Short put
Long call
Short call
Long put
8. An investor takes a long position in a stock at a price of USD 250 and does not buy on margin. The stock price rises to USD 620. The initial margin requirement of the investor's broker is 50%. What is the investor's potential loss on the trade?
