Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › wardegul co question 4 -sep/dec 2017
- This topic has 3 replies, 2 voices, and was last updated 6 years ago by John Moffat.
- AuthorPosts
- March 13, 2018 at 1:24 pm #442450
sir, when do the interest rate for option in future ,it is have to do the both strike price in exam? if I only get one of the strike price in exam, for eg, I only use 95.25 to get APR of 4.9% and 4.01%, will I give full marks Iin exam on this?
March 13, 2018 at 3:20 pm #442472Ideally you would show the calculations for both strike prices.
However, most of the marks are for proving that you know how options work, and so if you are short of time you would get most of the marks by just showing it for one of the strike prices (and writing that there is another one available).March 13, 2018 at 3:24 pm #442473sir, then does it means I can choose 95.25 as strike price by stating that is the best price in worst scenario case and get full mark on the calculation for option in future in exam?
March 13, 2018 at 5:32 pm #442487To get full marks you would have to look at both exercise prices but you would get most of the marks by just looking at one. (It may be best in the worst case, but it would be worst in the best case because the premium (which would be payable anyway) would be higher.
- AuthorPosts
- The topic ‘wardegul co question 4 -sep/dec 2017’ is closed to new replies.