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Kenduri

This topic has 1 reply, 2 voices, and was last updated 7 years ago by John Moffat.

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June 15, 2018 at 9:56 am #458822
richardscully
Participant
- Topics: 197
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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?
June 15, 2018 at 5:52 pm #458885
John Moffat
Keymaster
- Topics: 57
- Replies: 54835
Yes – 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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