BUSINESSMAN
99 Points
Joined January 2012
hey guys ppr was easy.
bt i got lil confuse in Q 3 in its part 2 and 3
As in 2nd part Q asks value of option at end of 4 months" if exercise price price prevails".
in my opinion it should b "if exepected price prevalis" as exercise price never changes.
so my ans is (160.50-150) = Rs.10.50 in 2nd part
And in third part i got it by following:-
0+0+10*0.50+30*0.10+40*0.15=Rs.14(so expected value of option is Rs. 14)
plz cn ny one tell if m i right..