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You hold 1 contract on a 1 3 2 September Call option on British pound. The premium of the contract is $ 1 2 0
You hold contract on a September Call option on British pound. The premium of the contract is $ per contract. The contract size is GBP Suppose at the expiration date, the spot rate is SUSDGBP Answer the following questions. Is this Call option Inthemoney" or "Outofthemoney"? What is the payoff of this contract at expiration? What is the profit of this contract at expiration? What is the ROR of this contract if it is exercised at expiration? Should you exercise or not exercise this option? Why or why not?
You hold contract on a September Call option on British pound. The premium of the contract is $ per contract. The contract size is GBP
Suppose at the expiration date, the spot rate is SUSDGBP Answer the following questions.
Is this Call option Inthemoney" or "Outofthemoney"?
What is the payoff of this contract at expiration?
What is the profit of this contract at expiration?
What is the ROR of this contract if it is exercised at expiration?
Should you exercise or not exercise this option? Why or why not?
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