The FTSE Index Is at 5,100

question 9

Multiple Choice

The FTSE index is at 5,100. You are short a straddle on the FTSE 100. struck at 5,100 and long a 5,000/5,200 strangle. You are also short a 5,000-5,100-5,200 butterfly. Ceteris paribus, an increase in the level of the FTSE

• A) Increases the value of your portfolio.
• B) Has no effect on the value of your portfolio.
• C) Decreases the value of your portfolio.
• D) Any of the above is possible.

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Definitions:

Blood Calcium

The level of calcium in the blood, essential for various physiological processes including bone formation, muscle contraction, and blood clotting.

Humoral

Related to body fluids, especially regarding the immune response mediated by antibodies in the bloodstream.

Lipid-soluble Hormone

A hormone that can pass through the cell membrane and interact with internal receptors due to its ability to dissolve in lipids.

Fenestrated Capillaries

Capillaries with pores in their endothelial lining, allowing for increased permeability to fluids and small molecules.