Suppose you have a long position in a call option on a futures contract, and the strike

Question:

Suppose you have a long position in a call option on a futures contract, and the strike price is 80 . The futures contract price is now 87 , and you want to exercise your option. Identify the gains from exercise, specifying any cash inflow and the futures position you get (and the price of the futures contract).

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Foundations Of Financial Markets And Institutions

ISBN: 9780136135319

4th Edition

Authors: Frank J Fabozzi, Franco G Modigliani, Frank J Jones

Question Posted: