Calculate the payoff at expiration for a put holder on an option on a Eurodollar future,...
Calculate the payoff at expiration for a put holder on an option on a Eurodollar future, where the underlying IMM index value at expiration using the IMM quotation on a 90-day dollar denominated time deposit on a $1,000,000 notional principal is 98.64 and the “exercise price” (also as an IMM index value) is 98.80
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$0 |
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$250 |
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$300 |
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$350 |
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$400 |
Homework Answers
Put option holder has right to sell the asset at exercise price
Profit on exercise = 98.8-98.64 = 0.16%
=1000000*0.16%*90/360
=$400
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Calculate the payoff at expiration for a put
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Hello,
Please provide details for the answers.
Thank you!
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Please provide details for the answers.
Thank you!
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