A one year call option with an exercise price of sh. 60 is available at a premium
Fantastic news! We've Found the answer you've been seeking!
Question:
A one year call option with an exercise price of sh. 60 is available at a premium of Sh. 6. You can also buy a one- year put with an exercise price of Sh. 55 at a premium of Sh. 3. If you set up a portfolio of a put and a call, what will be your pay-off, if the share price after one year is a) Sh. 58, b) Sh. 45 or c) Sh. 75?
Related Book For
Investment Analysis and Portfolio Management
ISBN: 978-1305262997
11th Edition
Authors: Frank K. Reilly, Keith C. Brown, Sanford J. Leeds
Posted Date: