The S&P/ASX200 market index is currently 6800. You predict that the market will rise substantially in coming

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The S&P/ASX200 market index is currently 6800. You predict that the market will rise substantially in coming weeks and are prepared to speculate on this prediction.

You enter 30 long call options written on the S&P/ASX200 index. The options have a strike price of 7100.

On the expiry date of these options, the S&P/ASX200 index sits at 7050.

What is the gross payoff (in dollars) on your index option speculation?

Related Book For answer-question

Microeconomics An Intuitive Approach with Calculus

ISBN: 978-0538453257

1st edition

Authors: Thomas Nechyba

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Posted Date: Jun 09, 2023 12:17 AM

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The S&P/ASX200 market index is currently 6800. You predict that the market will rise substantially in coming

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Given Number of long call options 30 Strike price of the op... View the full answer

Microeconomics An Intuitive Approach with Calculus

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