SFG Corp. (a US MNC) is seeking to purchase a large March call at $1.3: a Outline
Question:
SFG Corp. (a US MNC) is seeking to purchase a large March call at $1.3:
a Outline the circumstances that would explain SFG’s need for a call option.
b SFG finds the premium to be too expensive. Using the table in Question 10, explain how the premium can be eliminated and the ‘cost’ of doing so.
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