Hi tutor , there’s a currency option question named NTC from June 2002 paper and option cost is required , data is payment in 3 months $278995 Spot ($/拢) 1.4358_1.4366 3 months rate 1.4285_1.4300 Contract size 31250 Strike price 1.44 Premium 4.35 Option outcome is 拢199478 how to find option cost with this data Please guide me
There is a Question from 2006 Exams (Arnbrook Plc) on interest rate swap. Can somebody help me with part C of the question on how we get the 0.45% to add to our LOBOR in order to determine the interest rate which was also used as Discount Factors for obtaining the present values of savings from Swap.
Very helpful. I failed to get tuition back here in Uganda. These P4 tutorials help clear so much of the tricky bits. Could more lectures on other topics be included?
fatinka says
Very clear and helpful lecture. Thank you so much
John Moffat says
Thank you for your comment 馃檪
sehrish says
Hi tutor , there’s a currency option question named NTC from June 2002 paper and option cost is required , data is payment in 3 months $278995
Spot ($/拢) 1.4358_1.4366
3 months rate 1.4285_1.4300
Contract size 31250
Strike price 1.44
Premium 4.35
Option outcome is 拢199478
how to find option cost with this data
Please guide me
John Moffat says
You must ask this in the P4 Ask the Tutor Forum – not as a comment on a lecture.
christopheryaheya says
Hi all
There is a Question from 2006 Exams (Arnbrook Plc) on interest rate swap. Can somebody help me with part C of the question on how we get the 0.45% to add to our LOBOR in order to determine the interest rate which was also used as Discount Factors for obtaining the present values of savings from Swap.
christopheryaheya says
I mean June 2006
John Moffat says
Without the swap they would be paying LIBOR + 0.75% (per the question).
The saving to be made by swapping is 0.50% and they get 60% of the saving which is 0.30%.
So if you subtract that saving from what they would be paying without the swap, you get LIBOR + 0.45%
christopheryaheya says
Oh, Thank you very much sir
pwyc says
may i know when can i upload the latest p4 june 2012 revision notes?
dorothyk says
Very helpful. I failed to get tuition back here in Uganda. These P4 tutorials help clear so much of the tricky bits. Could more lectures on other topics be included?
assirem says
thank you so much
chaidiyun says
very helpful, thank you.