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The amount paid in US is $298,995
This is a payment and therefore PUT.The exam that we did, that was a receipt, therefore that is a CALLMuhammed, the home currency is the £ but the company is paying in $. You are not reading the question properly. I already know it is a PUT. That is the reason it is a PUT and not a call
You still havn’t looked a NTC in the BBP. I think you are missing out on some of the concepts.
Muhammed, still don’t know what you are trying to say.Look at NTC in the BBP kit. The company is a UK multinational company and the payment in question was in US dollars and that is a put option. Mock exam I question two is not a good example.
I am not disputing the buying selling of call and put as you mentioned. But have you noticed all the exercises I asked you to look at, not one departed from how I defined a call and a put?
Muhammed, Mock exam I believe is requesting a forward and a futures contract, not an option contract
In my earlier post it should read exporter should receive payment in x, it should be a call
Can also look at Autocratic plc in Mock exam 2 in the BBP and Mock exam three(3), Alec to in the BBP kiit
Okay, go back to NYC, Casasophia, HYK and Phobos in the BBP kit and tell me what you think. Look at the answers.
I don’t understand you, you ask me to look at the question Boltot and it Cleary says a call option and now you are justifying it. Chances are if you look at any other question where it says the trader the. Exporter should payment I’m x currency, it is going to be a call
A pleasant good day to you Muhammed. I hope you had a rested night. I am now looking at the answer to Polytot and the answer says it is a call option and the premium paid is 3.35. Have a look at it once more.
And in any case,whether it is a call or a put, wouldn’t that depend on the reverse position as well?
Well let me correct myself. When you are seeking more the benefit of more US dollar amount it should be a call and if it were a payment you would be seeking to pay a lower amount in US
Muhammad’s, when you are seeking the benefit of an higher rate it is a call and when you are seeking the benefit of a lower rate it is a put
I messed up the option section for question three (3). It was suppose to be €20.56million multiply by the option rate, not divide. Then to find the number of contracts you divide the €20.56 million by €125000. I divide this 20.56 by the option price and then divide the result€125000. I believe this is incorrect. Additionally, did anyone noticed it is a call option?