The skyrocketing price of oil and other commodities are causing uncertainties in the global economy. Stock markets
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Question:
(Assume 1 lot = 100 shares)
If a stock is trading at RM 7.50 and its RM 7.00 call is trading at RM 0.60, how much time premium is there in this call option?
QUESTION 2
An option has a time premium of 0.18 sen. Suppose the exercise price is RM12.00 and the underlying stock is currently selling at RM 12.40. Determine the correct option premium if the option is?
Related Book For
Contemporary business 2012 update
ISBN: 978-1118010303
14th edition
Authors: Louis E. Boone, ? David L. Kurtz
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