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BPP q40 (part c) Buryecs

This topic has 3 replies, 2 voices, and was last updated 3 years ago by John Moffat.

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May 18, 2021 at 5:49 pm #620966
boychenkove
Participant
- Topics: 16
- Replies: 92
Dear John,
Can you advise please, how they lapsed put option 1 without any calculations?
Thanks,
Veronika
May 19, 2021 at 7:56 am #621019
John Moffat
Keymaster
- Topics: 57
- Replies: 54478
They are receiving $7,500M.
By converting at $7.6046 per € they will receive more than if they exercised the option which would mean converting at $7.75 per €. Therefore they are better not to exercise the option.
May 19, 2021 at 6:21 pm #621097
boychenkove
Participant
- Topics: 16
- Replies: 92
Thanks!
May 19, 2021 at 6:36 pm #621104
John Moffat
Keymaster
- Topics: 57
- Replies: 54478
You are welcome 🙂
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