Question: Please answer 1) and 2). April 19, 2009, British Pound Option Prices (cents per pound, 62,500 pound contracts). (1448 and 1440 mean US $1.448 per

Please answer 1) and 2).

April 19, 2009, British Pound Option Prices (cents per pound, 62,500 pound contracts). (1448 and 1440 mean US $1.448 per 1 British pound and US $1.440 per 1 British pound.)

Option & Underlying Strike Price Calls Last Puts-Last
May June Jul May June July
1448 1440 0.88 1.42 1.42 0.52 1.06 -
1448 1450 0.42 1.02 - - - -
1448 1460 0.20 0.68 0.72 - 2.32 -

1) Refer to Table. What was the closing price of the British pound on April 18, 2009?

2) Refer to Table. The exercise price of ________ giving the purchaser the right to sell pounds in June has a cost per pound of ________ for a total price of ________.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!