sir, i couldnt really get the last bit of part (A) JUNE 2014 CMC CO. the amount left at risk in options was kept on forward rate later on, but my question is that for 1.06 why did u add the amount left at risk to get worst outcome, and in 1.07 why did u subtract the amount left at risk?
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9y ago#1Because with 1.06 there is a shortage in $'s which means paying more to get them,
With 1.07 there is a surplus which means we will sell the surplus.
Oh ok thanks sir, really really appreciate your efforts ! Without charging a dime u r helping others out of the goodness in your heart! Awesome!
9y ago#3Thank you for the comment :-)
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