Question
You bought a Canadian 6-month put option (size C$100,000) today at the strike price $0.7580 for which you had paid a premium of $0.005. The
You bought a Canadian 6-month put option (size C$100,000) today at the strike price $0.7580 for which you had paid a premium of $0.005. The spot rate today is $0.7500. The dollar interest is 3%. If you exercise the option today, your profit/loss is
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Financial Markets And Institutions
Authors: Frederic S. Mishkin, Stanley G. Eakin
7th Global Edition
0273754440, 9780273754442
