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You are given the following data on call and put premiums in-(Answered)

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You are given the following data on call and put premiums in pence per share for Company XYZ shares, which are currently priced in the market at 260 pence. Each contract refers to 1000 shares

Strike price

November call premium

November put premium

255 pence

55 pence

37 pence

285 pence

35 pence

54 pence

You expect the share price to rise to 350 pence. Discuss a speculative strategy and the profits/losses at a range of different prices for the underlying share in November

 

Paper#9255812 | Written in 27-Jul-2016

Price : $16
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