Question: Please mark out the answer for me. Thank you! (10 points) Assume there is no arbitrage unless otherwise stated. Facebook (FB) currently trades at $202.00.
Please mark out the answer for me. Thank you!
(10 points) Assume there is no arbitrage unless otherwise stated. Facebook (FB) currently trades at $202.00. You purchase a 24 month European $10.00 strike call option on a short futures contract on one share of FB. The futures delivery date is 37 months from now and the delivery price is $234.00. The risk-free rate is 5.9%. Compute the range of prices of FB one year from now that will make you want to exercise your option. Enter your solution in the form of a coordinate pair accurate to two decimal places, e.g. (123.45, 678.90). Do not include dollar symbols ($) in your solution. (10 points) Assume there is no arbitrage unless otherwise stated. Facebook (FB) currently trades at $202.00. You purchase a 24 month European $10.00 strike call option on a short futures contract on one share of FB. The futures delivery date is 37 months from now and the delivery price is $234.00. The risk-free rate is 5.9%. Compute the range of prices of FB one year from now that will make you want to exercise your option. Enter your solution in the form of a coordinate pair accurate to two decimal places, e.g. (123.45, 678.90). Do not include dollar symbols ($) in your solution
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