A company received $4.5 billion from selling put options. Assume all the puts expire worthless and the

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A company received $4.5 billion from selling put options. Assume all the puts expire worthless and the company gets to keep all the premiums it had collected. Further assume a cost of capital of the company at 12% annually and that the puts expire in 15 years. What would the value of these premiums be in 15 years?

Posted Date: May 14, 2024 08:06 AM

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A company received $4.5 billion from selling put options. Assume all the puts expire worthless and the

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