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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › exercise price in options
In kaplan exam kit,
if in que two exercise price are given then the calculations are also performed on both.
however, we can clearly identify, which exercise price is better.
like in case of borrowing, we put/sell options, initially higher exercise price will be preferable. however, we can be also double check by taking into consideration premium paid, to identify which exercise price is better. (similar approach is used in test your understanding, study text)
So my ques was if in que, it is not asked specifically about showing calculations at both exercise price then y waste time. as in exam, time management is critical.
kindly, guide which approach to follow, I initially prefer study text approach of exercise price as it saves time.
but if it will cost me, my marks then I will avoid using it
thanks in advance