I am doing some just in case studying
I notice with Kenduri option that if you take 24 options of the 1.62 you have some money left over and that more than pays the premium and therefore it is the cheapest option. The answer book doesn't seem to acknowledge that. Am I therefore wrong?
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Kenduri
8y ago#1Yes - you only have the money left over when you get the money (and only if the option is not exercised).
The premium has to be paid immediately - not when the transaction happens.
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