Assume that you hold 100 Vodacom shares which you intend to sell in a month's time....
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Assume that you hold 100 Vodacom shares which you intend to sell in a month's time. To protect yourself from future price risks, you then decided to construct a covered call strategy using a call option underwritten on 100 Vodacom shares and has an exercise price of R99 and a premium of R2.91. If Vodacom stock currently trades for R96.28, calculate the total profit of the covered call if the share price in a month's time is R89.74. STATE ONLY THE NUMERICAL VALUE AND ROUNDOFF YOUR ANSWER TO TWO DECIMAL PLACES. Answer: Assume that you hold 100 Vodacom shares which you intend to sell in a month's time. To protect yourself from future price risks, you then decided to construct a covered call strategy using a call option underwritten on 100 Vodacom shares and has an exercise price of R99 and a premium of R2.91. If Vodacom stock currently trades for R96.28, calculate the total profit of the covered call if the share price in a month's time is R89.74. STATE ONLY THE NUMERICAL VALUE AND ROUNDOFF YOUR ANSWER TO TWO DECIMAL PLACES. Answer:
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Auditing and Assurance services an integrated approach
ISBN: 978-0133125689
15th edition
Authors: Alvin a. arens, Randal j. elder, Mark s. Beasley
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