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Q19. Vertid ltd (Kaplan)

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

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December 1, 2017 at 9:41 am #419376
Nirrvan
Member
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Hello John,
I know this one is a very old question, but still !
I note that no contract size has been given in the question (understood that we are dealing with OTC and not traded options). In this case how do we proceed? Do you know any lectures on that part?
December 1, 2017 at 9:41 am #419378
Nirrvan
Member
- Topics: 2
- Replies: 11
It’s June 95 paper
December 1, 2017 at 2:19 pm #419422
John Moffat
Keymaster
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When they are OTC then there is no contract size – you get the option on the exact amount needed. Also, exercising the option simply means converting at the option exercise price.
There is no need for lectures on this 🙂
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