Question
A company received $4.5 billion from selling put options. Assume all the puts expire worthless and the company gets to keep all the premiums it
A company received $4.5 billion from selling put options. Assume all the puts expire worthless and the company gets to keep all the premiums it had collected. Further assume a cost of capital of the company at 12% annually and that the puts expire in 15 years. What would the value of these premiums be in 15 years?
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Intermediate Financial Management
Authors: Brigham, Daves
10th Edition
978-1439051764, 1111783659, 9780324594690, 1439051763, 9781111783655, 324594690, 978-1111021573
