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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › BPP q40 (part c) Buryecs
Dear John,
Can you advise please, how they lapsed put option 1 without any calculations?
Thanks,
Veronika
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.
Thanks!
You are welcome 🙂
