how to calculate the loss on collar hedge if the call option is excercised?
Q 72) c) FNDC PLC - Kaplan revision kit
Ask the Tutor ACCA AFM
loss on call option - collar hedge
I do not have the Kaplan kit - sorry!
(Do Kaplan not give an answer?)
they have, but i am not able to understand them. sir can you provide a general way as to how to compute the loss?
It is calculate in the same way as we calculate profits on put options - you take the difference between the exercise price and the futures price on the date the loan starts, multiply by the contract amount, and divide by 400.
Sign in to reply to this topic.
