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derivative questions

Discussion in 'Financial Planning' started by brucey007, 17th Jul, 2013.

  1. brucey007

    brucey007 New Member

    16th Jun, 2013
    1) If a european style option is exercised, which party is obligated to transact and when?

    2) Which of the following is at the money?

    a) Equity call option, strike price $1.85, current price $18.97
    b) 3 yr bond put option, SP $95.50 CP $95.50
    c) 10yr bond call SP 94.25 CP $97.00
    d)90 day bank bill put SP $97 CP $93.50

    3) Shares trading at $18.42. an 18.00 call option over these, which expires in 3 months with a premium of $0.70 has time value of? or intrinsic value of? or no intrinsic value.

    Thanks for your help