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ABC Corporation acquired a call option for 5,000 pieces of P1,000-face value bonds of XYZ Corp. at a strike price of P990 on a later
ABC Corporation acquired a call option for 5,000 pieces of P1,000-face value bonds of XYZ Corp. at a strike price of P990 on a later date. ABC paid a premium of P47,000. On the exercise day of the option, the bonds were selling at 98. Compute for the net gain or (loss) from the derivative contract.
Topic: Financial Risk Management (Types of Derivatives: Options)
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