Presently, the futures contract trades at Sh. 1,000 and 3 month put and call options both...
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Presently, the futures contract trades at Sh. 1,000 and 3 month put and call options both involve premiums of 1 per cent based on this strike price. During the 3 months, interest rates rise so that the price on a treasury bond futures contract goes to Sh. 950. What is the gain or loss on the option per Sh. 1,000,000 contract? (5 marks) Presently, the futures contract trades at Sh. 1,000 and 3 month put and call options both involve premiums of 1 per cent based on this strike price. During the 3 months, interest rates rise so that the price on a treasury bond futures contract goes to Sh. 950. What is the gain or loss on the option per Sh. 1,000,000 contract? (5 marks)
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Related Book For
Advanced Accounting
ISBN: 978-1305084858
12th edition
Authors: Paul M. Fischer, William J. Tayler, Rita H. Cheng
Posted Date:
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