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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › UNIGLOW (Kaplan kit q54)
Hello sir
In question UNIGLOW(Kaplan q54), it was asked to describe the the effect of determinants of bsop on call option. I want to ask you that can I reverse the answer given for put option? Thanks
It is not quite so simple as that – you need to think properly about the effects.
Spot price – OK reverse
Exercise price – OK reverse
Time until expiry – same for put and call
risk – same for put and call
risk-free rate – same for put and call
Thanks sir
You are welcome 🙂