Question
Suppose you buy an options on futures contract at $428 (exercise price). At expiration, the spot price(futures price) is $ 435. The risk-free rate is
Suppose you buy an options on futures contract at $428 (exercise price). At expiration, the spot price(futures price) is $ 435. The risk-free rate is 10 percent. What is the intrinsic value of the call?
O A.$ 7
O B.$ 0
O C.$ 6.35
O D.$ 7.5
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Intermediate Financial Theory
Authors: Jean-Pierre Danthine, John B. Donaldson
2nd Edition
0123693802, 978-0123693808
