[Solved] you have bought a european put option on | SolutionInn

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Oct 07, 2024

you have bought a european put option on nzd10,000 (the new zealand dollar) with an exercise price of $.6300 and a premium of $.0016. The

you have bought a european put option on nzd10,000 (the new zealand dollar) with an exercise price of $.6300 and a premium of $.0016. The current market price of NZD is $.6413. What is the value of the option on the expiration date if the market price is $.6150? What is your profit?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The 30 Minute Stock Trader

The 30 Minute Stock Trader

Authors: Laurens Bensdorp

1st Edition

ISBN: 1619615738, 978-1619615731

More Books

Students also viewed these Finance questions

Question

★★★★★

You are buying a house and will borrow $200,000 on a 30-year fixed rate mortgage with monthly payments to finance the purchase. Your loan officer has offered you a mortgage with an APR of 4 percent....

Answered: 1 week ago

Question

★★★★★

1.0 Points Suppose that a histogram of a data set is approximately symmetric and "bell shaped". Approximately what percent of the observations are within two standard deviations of the mean? A.68%...

Answered: 1 week ago

Question

★★★★★

4.10 Global warming has had significant negative effects. But it has also had some positive effects. In particular, wine growing regions in several major producing countries have expanded, increasing...

Answered: 1 week ago

Question

★★★★★

Sourk Distributors is a retail business. The following sales, returns, and cash receipts occurred during March 20--. There is an 8% sales tax. Beginning general ledger account balances were Cash,...

Answered: 1 week ago

Question

★★★★★

you have bought a european put option on nzd10,000 (the new zealand dollar) with an exercise price of $.6300 and a premium of $.0016. The current market price of NZD is $.6413. What is the value of...

Answered: 1 week ago

Question

★★★★★

(2) Writing Equivalent Inverse Equation Example 1: Write each equation in its equivalent exponential form: (Use the inverse machine!) a) 3 = log7 x b) 2 = logb 25 c) log4 26 = y Example 2: Write each...

Answered: 1 week ago

Question

★★★★★

plaese clear steps how to slove it in excel? H Company advertises on soap operas and football games. Each soap opera ad costs $50,000, and each football game ad costs $100,000 ving all figures in...

Answered: 1 week ago

Question

★★★★★

Measures of liquidity, solvency, and profitability The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $82.60 on December 31, 2012....

Answered: 1 week ago

Question

★★★★★

Two years ago, Carlisle Industries commenced its business by issuing 250,000 shares of $5 par value stock for $28 per share. During the fourth quarter of the current year, the company repurchased...

Answered: 1 week ago

Question

★★★★★

Staff Company allocates common Building Department costs to producing departments (P1 and P2) based on space occupied, and it allocates common Personnel Department costs based on the number of...

Answered: 1 week ago

Question

★★★★★

Please provide answers in good accounting form. Thank you! Problem 1 On August 31 2021, DASHER Company issued at 104 plus accrued interest, three thousand 10% bonds with a face amount of 1 000 per...

Answered: 1 week ago

Previous Question Next Question