ABC Corporation bought 5 short futures. The contract size is 10,000 shares of Mining Inc. The...

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ABC Corporation bought 5 short futures. The contract size is 10,000 shares of Mining Inc. The strike price is P87 per share. If the market price of a share is P91 per share on the agreed date, ABC would have a total gain/loss) from these contracts amounting to? Problem 5: Options - Buying Stocks: ABC Corporation acquired an option to buy 5,000 shares of XYZ Corp. at a strike price of P300 on a later date. ABC paid a premium of P4,000. On the last day of the option, and XYZ Corp. stock is selling at P280 each. If ABC will be acquiring the XYZ stocks, how much should it pay? ABC Corporation bought 5 short futures. The contract size is 10,000 shares of Mining Inc. The strike price is P87 per share. If the market price of a share is P91 per share on the agreed date, ABC would have a total gain/loss) from these contracts amounting to? Problem 5: Options - Buying Stocks: ABC Corporation acquired an option to buy 5,000 shares of XYZ Corp. at a strike price of P300 on a later date. ABC paid a premium of P4,000. On the last day of the option, and XYZ Corp. stock is selling at P280 each. If ABC will be acquiring the XYZ stocks, how much should it pay?

Answer rating: 100% (QA)

Lets calculate the gainsloss for each scenario Problem 1 Short Futures on Mining Inc ABC Corporation bought 5 short futures with a contract size of 10... View the full answer