Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
On 1 May 20X4 XYZ invests in 110 call options for Fantasy Travel Limited shares. The options have an exercise price of $59 per share and will expire on 30 April 20X6. Price for each option is $9. Fantasy Travel Limited’s shares price on 1 May 20X4 is $63.
The
Other data
|
Date |
Share Price |
Option Price |
|
30 June 20X4 |
67 |
20 |
|
30 June 20X5 |
82 |
24 |
What is the value of the options on 30 June 20X5?
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