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Interest rate option

QQwerty2y ago
If they hav given 2 or 3 ex price, is it necessary to solve all 3 or can I select 1 best ex price in which overall cost including premium is low and solve
John MoffatJohn MoffatTutor2y ago#1
Unless the question specifies differently (which is unlikely) then for full marks you should show the calculations for all the exercise prices (usually there are only 2 so it doesn't take too long. If you are short of time then just showing for one exercise price will get more than half the marks for the section because the marks are mainly for proving you know how options 'work'.
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