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John Moffat.
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faisal8
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Is it necessary to show the calculations with both the exercise prices? can’t we just use one exercise price and compare it with the futures price?
John Moffat
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Ideally you should show the calculations of all exercise prices (and after doing it for one it is actually very quick to do it for the second). Simply comparing with the futures price is not enough because of the premium.
However if you are short of time then just showing for one option price will get most of the marks because the important thing is to prove that you know how options work.
faisal8
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