Question
XYZ plc has been offered the following quotes for options on the dollar given a current market price of 60 pence: Strike Price of Dollar
XYZ plc has been offered the following quotes for options on the dollar given a
current market price of 60 pence:
| Strike Price of Dollar in Pence | Call Premium | Put Premium |
|
| 1 year | 1 Year |
| 62 | 6.9 | 3.0 |
| 64 | 5.9 | 3.8 |
| 66 | 4.8 | 4.5 |
| 67 | 4.5 | 5.1 |
a. Calculate the net payout from a purchased call option at a strike price of
67 pence for the following possible maturity prices 55p, 60p,65p,70p,75p.
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World Scientific Handbook Of Futures Markets
Authors: Anastasios G Malliaris ,William T Ziemba
1st Edition
9811203024, 978-9811203022
