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Kinsteel Bhds equity price today is RM7.00. 60-day call 60-day put 6.60 call = 0.80 6.60 put = 0.10 7.00 call = 0.40 7.00 put
Kinsteel Bhds equity price today is RM7.00.
60-day call | 60-day put |
6.60 call = 0.80 | 6.60 put = 0.10 |
7.00 call = 0.40 | 7.00 put = 0.30 |
7.60 call = 0.09 | 7.60 put = 0.90 |
Required:
- State the options which breakeven. (2 marks)
- Is the 90-day cost of option be larger or smaller than the cost of option above if it was
(i) a call option (1 mark)
(ii) a put option (1 mark)
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