Question
1) A call option on the UK pound has an exercise price $1.51/ sells for a premium of $0.04/. If one contract is for 100,000and
1) A call option on the UK pound has an exercise price $1.51/ sells for a premium of $0.04/. If one contract is for 100,000and the spot price at maturity is $1.35/, then: What is the profit to the option holder? (negative numbers represent losses)?
2) A put option on the Canadian dollar has an exercise price USD 0.78/CAD sells for a premium of $0.026/CAD. If one contract is for CAD 100,000 and the spot price at maturity is $0.69/CAD: What is the profit to the option holder? (negative numbers represent losses)
3) A put option on the Canadian dollar with an exercise price USD 0.76/CAD sells for a premium of $0.038/CAD. If one contract is for CAD 100,000 and the spot price at maturity is $0.78/CAD: What is the profit to the option writer? (negative numbers represent losses)
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Bakers Health Care Finance Basic Tools For Nonfinancial Managers
Authors: Thomas K. Ross
6th Edition
1284233162, 978-1284233162
