Answered step by step
Verified Expert Solution
Question
1 Approved Answer
assuming the current spot price of gold is $1.86 , a three month call option on 1000 ounces of gold has an exercise price of
assuming the current spot price of gold is $1.86 , a three month call option on 1000 ounces of gold has an exercise price of $1.80 and a premium of $0.24 . if after two months the price per ounce of gold is $2.10 and the premium on this option is now $0.36 . should the investor trade or exercise this option?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started