When computing, please do not round off. Only final answers must be rounded off to two decimal places. ABC Mining Inc. bought a option for P1,225. The option allows ABC to sell 10 tons of copper at a price of P30,200 per ton one month from now. If on the exercise date, a ton of copper sells for P29,600, how much is the net benefit obtained by ABC from the contract?
When computing, please do not round off. Only final answers must be rounded off to two decimal places. ABC Mining Inc. bought a option for P1,225. The option allows ABC to sell 10 tons of copper at a price of P30,200 per ton one month from now. If on the exercise date, a ton of copper sells for P29,600, how much is the net benefit obtained by ABC from the contract?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Topic: Option Pricing
When computing, please do not round off. Only final answers must be rounded off to two decimal places.
ABC Mining Inc. bought a option for P1,225. The option allows ABC to sell 10 tons of copper at a price of P30,200 per ton one month from now. If on the exercise date, a ton of copper sells for P29,600, how much is the net benefit obtained by ABC from the contract?
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