Question
Today is the expiration day of a call option on the Swiss franc that you purchased two weeks ago when the spot rate was $1.0480/SF.
Today is the expiration day of a call option on the Swiss franc that you purchased two weeks ago when the spot rate was $1.0480/SF. The strike rate on the option is $1.0490/SF and the premium was $0.0300/SF.
If todays spot rate is $1.0630/SF, would you exercise? Why or why not? How much would your payoff be? How much would your profit/loss be?
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Commodity Market Trading And Investment
Authors: Tom James
1st Edition
1137432802, 978-1137432803
