Question 1: In the table below you are given the details of the put and call options on the shares of Fica Limited Expiration Date Exercise Price Call Price (Premium) Put Price (Premium) (Rand) (Rand)...


Question 1:<br>In the table below you are given the details of the put and call options on the shares of Fica Limited<br>Expiration Date<br>Exercise Price<br>Call Price (Premium) Put Price (Premium)<br>(Rand)<br>(Rand)<br>(Rand)<br>September 2015<br>430<br>41.20<br>11.05<br>460<br>22.50<br>22.20<br>490<br>10.10<br>39.36<br>January 2016<br>430<br>65.98<br>27.20<br>Required<br>1. Determine the pay-off and profit/loss to an investor who;<br>a) Purchases the September-expiration Fica Ltd.'s call options with an exercise price of R490<br>if the share pri<br>b) Sells the September-expiration Fica Ltd.'s call options with an exercise price of R490 if<br>the share price at expiration is R400? What if the stock price at expiration is R550?<br>at expiration is R400? What if the share pric<br>expiration is R550?<br>

Extracted text: Question 1: In the table below you are given the details of the put and call options on the shares of Fica Limited Expiration Date Exercise Price Call Price (Premium) Put Price (Premium) (Rand) (Rand) (Rand) September 2015 430 41.20 11.05 460 22.50 22.20 490 10.10 39.36 January 2016 430 65.98 27.20 Required 1. Determine the pay-off and profit/loss to an investor who; a) Purchases the September-expiration Fica Ltd.'s call options with an exercise price of R490 if the share pri b) Sells the September-expiration Fica Ltd.'s call options with an exercise price of R490 if the share price at expiration is R400? What if the stock price at expiration is R550? at expiration is R400? What if the share pric expiration is R550?

Jun 10, 2022
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