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Question 1 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
Question 1
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 are profitable and calculate their intrinsic values.
(6 marks)
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The Finance Book
Authors: Stuart Warner, Si Hussain
1st Edition
1292123648, 978-1292123646
