SuperSoft

SuperSoft - $41,250.00 for 62,500.00 DM Would sell the rest...

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Super Soft Case Put Option Contracts Quoted Prices Option DM 62,500.00 European Style American Style Strike Prices Nov. 11 Dec. 9 Nov. 11 Dec. 11 American Op in DM/$ in $/DM Cost 1.6129 0.620 0.17 1.6000 0.625 0.24 1.5873 0.630 0.09 0.3 0.1 0.34 62.50 1.5748 0.635 0.15 0.37 93.75 1.5625 0.640 0.51 0.25 0.57 156.25 1.5504 0.645 0.36 0.34 0.68 212.50 1.5385 0.650 1.05 - 1.5267 0.655 0.68 425.00 1.5152 0.660 0.92 1.39 575.00 Old spot Exp. $ SuperSoft expects to receive $69,750 1.55 $45,000 They are hurt by DM weakening Option to buy December 0.66 If spot on Dec 1 is DM/$ 1.630 SS would exercise option to sell Would receive
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Unformatted text preview: $41,250.00 for 62,500.00 DM Would sell the rest at 4,447.85 7,250.00 Excess Total receipt $45,697.85 for a difference of $697.85 Compare to Minus cost of PUT Transaction $(60.00) open market PUT Price $(868.75) $42,791.41 Compared to $45,000 Net Gain (Loss) $(230.90) $(2,208.59) in /DM in /DM in /DM in /DM Strike Price ptions Spot Rate 0.62 0.64 0.66 Cost 1.48 (2280.10) (1030.10) 219.90 106.25 1.55 (2501.33) (1251.33) (1.33) 1.63 (2730.90) (1480.90) (230.90) 212.50 231.25 exercise 356.25 425.00 656.25 - 868.75...
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This note was uploaded on 03/17/2011 for the course MANEC 453 taught by Professor Jerrynelson during the Fall '10 term at BYU.

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SuperSoft - $41,250.00 for 62,500.00 DM Would sell the rest...

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