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in every question of exam 2 or 3 types of options are provided with different exercise prices.. i want to know that in our answer we have to show calculation on every option or on a single best option??? i am confused
No – you do not have to show for every exercise price (unless obviously the question tells you to).
The marks are for proving that you know how options ‘work’ and so you will get most, if not all, of the marks for just showing it for one strike price.
Have you watched my free lectures on foreign exchange and interest rate options? Because in the lectures I go through all of them in detail.
yes i have watched lecture… but i am confused that in some questions examiner says that interest rate can be low or high by (e.g) 8% on current rate of 10% ..so students are required to show calculation on both assumptions (18% and 2%) or on a single assumption either 18% or 2% ?
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