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In one of your videos you mentioned if you have time use both strike prices for Options if time permits(usually it doesnt if paper is a bit lenghty)
IN BPP Text book
they have said choose the “logical exersise price example cheapest or closest to the current spot rate)
if i dont have enough time which one should i choose if the two are different
that is cheapest or closest to the current spot rate
and finally if these assumptions are correct or not
Just FYI its in pg 259 of the text 4.4
Thank you
I do not have the BPP Study Text, only the Revision Kit.
However there is no such thing as a ‘best’ strike price because the limit will be different but also so will the cost.
Ideally you should calculate for all the strike prices (there are usually only two, and when you have done one of them then it is very quick to do the other).
However if you are short of time then doing one (any one) will get more than the half marks needed because it s proving that you understand how options work that is important.
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