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sfm oct 2018 pm chapter indian capital market
Q53 in the last line of the solution they have wriiten market price is higher than strike price so put option wont be exercised but my question is: what is" the market price after 6 months" for this sum?
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market price is given,there may be 5 different market prices after 6 months like-180,260,280,320,400.And their probability distribution is also given,but we have to calculate premium for all the market prices seperately and then multiply the OP with probability then that will be the value of option premium as on maturity.
in case where star mark is given , there 320 and 400 both are more than 300(exercise price) ,hence put option will not be exercised in that cases.
in case where star mark is given , there 320 and 400 both are more than 300(exercise price) ,hence put option will not be exercised in that cases.
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