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Hi John – in the marking scheme for CMC question
options calculation using with 1.06 or 1.07 rate -3 marks
options calculation using the second rate (or explanation) -2 marksCan I just calculate the option using both rates ( provided 2 are given ) in any exam question to get additional marks?
What exactly is meant by explanation in order to get the two marks ?
and will this explanation be the same in all questions?Thanks your help is greatly appreciated
If you have time then you should show calculations for all of the exercise prices available. If you are short of time, then show them for just one exercise price but state that there is an alternative which would set a different limit but would have a different cost. (However, once you have done the calculations for one exercise price, it doesn’t actually take long to do it for a second one.)
(Incidentally, you can find lectures working through the whole of this question linked from the following page:
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