[quanghado]

Thanks a lot Jwanyu

[quanghado]

Dear Sir,

So sorry, not “Premium payable: $ 95,200”
Gain on options: $ 95,200

Thanks Sir

[quanghado]

Dear Sir,

I also have gone through the lecture of Interest Hedge but I could not understand the answer of “Using a collar on options to hedge”

Why choose “Buy put” at 95.50 and “Sell call” at 96.00?

Why don’t choose “Buy put” at 96.00 and “Sell call” at 95.50?

If we choose “Buy put” at 96.00 and “Sell call” at 95.50, the result as below:

Buy put Sell call
Exercise price 96·00 95·50
Futures price 95·44 95·44
Exercise? Yes No

Premium payable: $ 95,200
Net cost of the collar: $ 5,610 ((54.1-50.8)*25*68)

Better result, is it right?

Thank you so much, Sir

[Author]

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