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Working for Unfavourable option

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Working for Unfavourable option

  • This topic has 2 replies, 3 voices, and was last updated 13 years ago by John Moffat.
Viewing 3 posts - 1 through 3 (of 3 total)
  • Author
    Posts
  • November 21, 2012 at 4:34 pm #55590
    AQ!
    Member
    • Topics: 13
    • Replies: 49
    • ☆☆

    If we are given two exercise prices and one of them is not favorable…should be show the calculation …If we write only option will not be exercised…and show calculation for exercisable option ?????

    There are some questions in kit and calculation has been shown.

    November 25, 2012 at 12:35 am #108295
    nandinigirish
    Member
    • Topics: 4
    • Replies: 6
    • ☆

    Hi AQ,

    State your assumption clearly in exam saying why the option is not favourable.
    Then show the calculation for excercise price which you choosed.

    November 25, 2012 at 9:18 am #108297
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54795
    • ☆☆☆☆☆

    Thats true.

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