question archive - Principal = $20 million - Strike = 0
- Principal = $20 million - Strike = 0
Subject:FinancePrice:2.86 Bought7
- Principal = $20 million
- Strike = 0.700
- Put Option = 0.01967
- Call Option = 0.04376
- Maturity Date = 10.01.2022
- Number of Put Contracts =
- Number of Call Contracts =
- Premium =
|
Option |
Price $ |
Shares Per Contract |
Price $ Per Contract |
|
|
Call Option |
0.04376 |
100 |
4.376 |
|
|
Put Option |
0.01967 |
100 |
1.967 |
|
|
0.06343 |
6.343 |
|||
|
Number of Contracts |
Total Contracts |
|||
|
Call Options |
4.376 |
20,000,000 |
4,570,384 |
45,704 |
|
Put Options |
1.967 |
20,000,000 |
10,167,768 |
101,678 |
|
6.343 |
||||
|
Call Calculation |
$20M/4.376 / 100 |
|||
|
Put Calculation |
$20M/1.967 / 100 |
|||
|
Strike Price |
0.700 |
70.00 |
147,382 |
10,316,706.46 |
|
Range |
0.700 |
0.7634 |
||
|
0.700 |
0.6366 |
|||
are my calculations correct
Purchase A New Answer
Custom new solution created by our subject matter experts
GET A QUOTE
Answer Preview
Yes your calculations are 100% correct
You can also apply strategy here sell put and call options at the same time in equal lot
You will be in profit on expiry if the assets price will remain in calculated range.
Out of range you will lose !!
Be careful while applying any strategy
