Question: Question2 In the table below you are given the details of the put options on the shares of Fica Limited Expiration Date September 2015

Question2 In the table below you are given the details of the put options on the shares of Fica Limited Expiration Date September 2015 January 2016 Exercise Price (Rand) 430 430 Put Price (Premium) (Rand) 11.05 27.20 Required a) Determine the pay-off and profit/loss to an investor who purchases the January 2016- expiration Fica Ltd.'s put options with an exercise price of R430 if the share price at expiration is R400? What if the share price at expiration is R520? b) Determine the pay-off and profit/loss to an investor who sells the January 2016-expiration Fica Ltd.'s put options with an exercise price of R430 if the share price at expiration is R400? What if the stock price at expiration is R520?

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