Question
Omega Limited, a gold manufacturer, hold a short put European option with an exercise price of $500 per ounce for 100 ounces only to be
Omega Limited, a gold manufacturer, hold a short put European option with an exercise price of $500 per ounce for 100 ounces only to be exercised in 6 months. The premium is $50 per ounce. If market gold price after 6 months is $700 per ounce, what would be the gain or loss assuming no time value of money."
"-$5,000"
"-$15,000"
"$15,000 "
"$5,000 "
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Multinational Business Finance
Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett
14th edition
133879879, 978-0133879872
