a soccer club (A) is going to lend (paying loan), for one year, a young striker to another club (B). The young striker, at that time, is still under contract with club A for a residual term of four years. During the term of the loan, the striker's salary would be paid 50-50 by both clubs. If club B wanted to have a purchase option after one year to obtain the player's final transfer, what changes to the loan contract would be possible in connection with the strike? Make the link with the financial elements seen in progress.

What factors would cause the option to be exercised (or not) after one year?

Please help me !!

Answer rating: 100% (QA)

Options contracts are the financial derivatives that would provide buyers the right but it does not ... View the full answer