Beruflich Dokumente
Kultur Dokumente
Net purchases
669,500 USD
447,228 GBP
62,500
7.16
Contracts
Future sell
Future Buy
437,500
437,500
437,500
1.4970
1.565 -
Target
Actual Cost
Loss
654,938
684,688
29,750
423,734
18,829
442,563
Ready loss
Target
Actual
Gain
431,935
442,563
10,628 GBP
431,935
423,734
8,201
Future outcome
18,829
Net Loss
10,628
Question
Option Type
Underlying
Call option
Shares of Z Limited
Step 1
Best Exercise price
SP
Prem
91
93
95
Net
1.3
0.5
0.35
92.3
93.5
95.35
Transaction date
Spot
85
From option
Unhedge
91
85
15,000
200
1,365,000
17,000
1,382,000
From market
85
15,200
1,292,000
15,000
1,292,000
19,500
1,311,500
1.3
Case 2
Spot
97
From option
Unhedge
91
97
15,000
200
1,365,000
19,400
1,384,400
From market
97
15,200
1,474,400
1.3
15,000
1,384,400
19,500
1,403,900
Put option
Shares of Company Z
Prem
91
93
95
0.8
1.35
2.3
Net
90.20
91.65
92.70
Spot
85
From option
Unhedge
95
85
15,000
200
1,425,000
17,000
1,442,000
From market
85
15,200
1,292,000
15,000 -
1,442,000
34,500
1,407,500
-2.3
Case 2
Spot
97
From option
Unhedge
95
97
15,000
200
1,425,000
19,400
1,444,400
From market
97
15,200
1,474,400
15,000 -
1,474,400
34,500
-2.3
1,439,900
Question
Call option
Underlying
SP
Buy USD
USD
Prem
Net
125
3.00
128.00
128
2.50
130.50
130
1.50
131.50
Transaction date
Spot
130
From option
Unhedged
125
130
100,000
450
12,500,000
58,500
12,558,500
From market
130
100,450
13,058,500
100,000
12,558,500
300,000
12,858,500
Case 2
Spot
130
From option
Unhedged
125
129
101,000
150 -
12,625,000
19,350
12,605,650
From market
130
100,850
13,110,500
Cost of acquisition
Premium
101,000
12,605,650
303,000
12,908,650
Question
Option Type
Underlying
Put option
Euros
Prem
130
135
140
Net
4
10
16
126.00
125.00
124.00
Size of payment
Contract Size
Contracts
270,000
62,500
4.32
Limited to
250,000
Transaction date
Spot
128
From option
Unhedged
130
128
250,000
20,000
32,500,000
2,560,000
35,060,000
From market
128
270,000
34,560,000
250,000 -
35,060,000
1,000,000
34,060,000
Question
Option Type
Underlying
Put option
SA Rands
EP
19.30 RA / GBP
Transaction date
Spot
21
From options
19
20,000,000
(to be received from the options contract)
From market
21
Go for option
Premium
20,000,000
1,036,269
952,380.95
1,036,269
24,000
1,012,269
Case 2
Spot
17.60
From options
19
20,000,000
(to be received from the options contract)
1,036,269
From market
1,136,364
Go for market
Premium
18
20,000,000
1,136,364
24,000
1,112,364
Question
Option type
Under lying
Put option
GBP
Best EP
SP
Prem
Net
1.50 0.0042
1.4958
1.55 0.0415
1.5085
1.60
0.094
1.506
Coverage to be made
Min Contract size
Contracts
3,750,000
31,250
120.00
Transaction date
1.48
From option
1.55
3,750,000
5,812,500
From market
1.48
3,750,000
5,550,000
5,812,500
155,625
5,656,875
case 2
Transaction date
1.57
From option
1.55
3,750,000
5,812,500
From market
1.57
3,750,000
5,887,500
5,887,500
155,625
5,731,875
case 3
Transaction date
1.62
From option
1.55
3,750,000
5,812,500
From market
1.62
3,750,000
6,075,000
6,075,000
155,625
5,919,375
Question
Option Type
Underlying
Theme
Call option
GBP
I will be purchasing GBPs and Will pay in USD
which I will receive from my client / customer
Step 1
Pick the best EP (Lowest possible cost)
SP
Pre
Net
1.4 0.0574
1.4574
1.425
0.034
1.459
1.45 0.0194
1.4694
Coverage to be made
Contract size
Contracts
7,142,857
31,250
228.57
So
Converage to be done
229
7,156,250
Transaction date
Spot
1.55
From options
1.4
7,156,250
10,018,750
From market
1.55
7,156,250
11,092,188
7,156,250
10,018,750
From option
From custmoers
To be purchased from market
Cost
1.55
18,750
10,000,000
18,750
12,097
(USD)
Effective proceeds in GBP
Premium
7,144,153
284,053
6,860,100
Question
Me
Dealer
Me
Ok. If I sell GBPs which currency will you give me in exchange
Dealaer Dollors sir
Me
So if I need dollors to sell, I can buy GBPs in options. You will give
me GBP abd I will give you dollors which I will receive from my
foreign customers.
Contract Type
Underlying
Step 1
Pick the best EP
SP
ER
NET
1.4 0.0574
1.4574
1.425
0.034
1.459
1.45 0.0194
1.4694
Step 2
Select contract quantity
Call option
GBP (unfortunatly, but I need USD to sell)
Amount
Rate
GBP to be purchased
Contract Size
Contracts
10,000,000
1.4
7,142,857
31,250
228.57
7,156,250
Step 2
Pay premium in dollors and purchase dollors for this purpose
GBPs purchased
Premium
Amount in USD
Conversion rate
Cost in GBPs
7,156,250
0.0574
410,769
1.4461 Selling rate indir quote
284,053 Paid on day 1
in GBPs
From option
1.40
7,156,250
10,018,750
From market
1.55
7,156,250
11,092,188
From options
Payment through clinet receipt
Total payment
For acquisition of GBP
For buying extra shares
premuim paid
Total
Question
Option Type
Underlying
Step 1
Select the best EP
Call option
GBP
10,018,750
10,000,000
18,750
7,156,250
12,097
284,053
6,860,100
SP
ER
NET
1.4 0.0574
1.4574
1.425
0.034
1.459
1.45 0.0194
1.4694
Step 2
Select the number of contracts
Coverage to be made
Convert
Size of the contract
Contracts
10,000,000
7,142,857
31,250
228.57
1.40
So
229
7,156,250
Premium to be paid
Coevrage
Premium
Premium
GBP payment
7,156,250
0.0574
410,769
284,053
GBP
in USD
USD
At Selling rate on acq date
Step 3
Transaction date hisab kitab
Spot
1.35
From option
1.40
7,156,250
10,018,750
From market
1.35
7,156,250
9,660,937.50
Go for market
Premium paid
1.35
10,000,000
7,407,407
284,053
7,123,355
Question
From option
155
100,000
15,500,000
From market
170
100,000
17,000,000
15,500,000
14.50%
3
-1.87
1.13
Best stratey
Buy shares now using loan and sell it in futures
Total receovery
17,300,000
PV of the recover
Cost
premium
Future income
Interest cost
14.50%
0.1
-0.04
0.06
17,093,454
15,500,000
300,000
1,293,454
GBPs
GBPs
GBPs
GBPs
USD
n exchange
d USD to sell)
indir quote
USD
te on acq date
Question
Option type
Underlying
Call option
GBP purchased
Step 1
Pick the best EP
SP
Prem
Net
1.40
0.0574
1.43
0.03
1.45
0.02
Step 2
1.4574
1.459
1.4694
Coverage to be made
Contract Size
Contracts
So
Step 3
229
Premium paid
0.0574
7,156,250
1.4461
410,769
Transaction date
Spot
1.55
From option
1.40
7,156,250
From market
1.55
7,156,250
Part 2
Option Type
Underlying
Step 1
EP
Step 2
Call option
GBP
Pick the best EP
Prem
Net
1.40
0.0574
1.43
0.03
1.45
0.02
Contract selecttion
Coverage to be made
Conversion
Contract size
Conracts requirement
So
1.4574
1.459
1.4694
Step 3
Premium paid
Premium
Conversion at start
0.06
7,156,250
1.4461
From option
1.40
7,156,250
From market
1.35
7,156,250
1.35
10,000,000
Transaction date
Go for market
Acquire
Premium paid
Question
Best strategy
Exercise the call option now
Share price
Exercise price
Gain
170
155
15
3.00
-1.87
1.13
17,300,000
15,500,000
187,292
1,612,708
Exercise of option
Arbitrage on future
Total gains
1,500,000
112,708
1,612,708
Part 2
Dont exercise the option
Just take the arbitrage gains
Gains
Interest cost
0.10
-0.05
0.05
Question
Forward
Rates
Spot
1 month Fwd
2 month Fwd
3 month Fwd
60.50
60.75
61.00
61.26
Options
Jan
Feb
Mar
From option
From Mrkt
3,214,450
3,219,750
3,214,450
3,190,600
3,214,450
3,227,700
Jan
Feb
Mar
Outcome
Premium
3,214,450
21,200
3,190,600
31,800
3,214,450
48,760
Futures
Future Buy
Future Sell
Ready buy
Future Outcome
3,214,450 3,206,500
7,950 -
3,259,500
3,182,650
76,850
3,219,750
7,950
3,227,700
3,190,600
76,850
3,267,450
Question
Option type
Underlying
Step 1
SP
Put option
GBP sold
select the best EP
Prem
Net
1.475
0.00
1.5
0.01
1.525
0.01
Step 2
1.47481
1.4947
1.5125
Contracts
Coverage to ba made
Conversion
Contract size
Contracts
2,000,000
1,311,475
31,250
41.9672131148
So
Step 3
Premium
1,312,500
Premium payment
0.0125
1,312,500
Convert on spot
16,406.25
10,688
Step 4
From option
1,312,500
2,001,562.50
From market
Go for market
Premium paid
Surplu
1,312,500
1,916,250
1,312,500
10,688
1,069
1,322,119
7,142,857
31,250
228.57
7,156,250
410,768.75
10,018,750
11,092,188
10,018,750 USD
7,156,250 GBP
18,750
12,097 GBP
7,156,250
284,053
12,097
6,860,100
10,000,000
1.40
7,142,857
31,250
228.57
7,156,250
Outflow
410,768.75
284,053 GBP paid
10,018,750
9,660,938
7,407,407.41
284,053
7,123,355
(173-170)
(155 * .145/2)
(173 * 100,000)
4.25 * 0.145 / 12
Amount
3,219,805
3,233,165
3,246,581
9,699,551
Outcomes
3,214,450
3,190,600
3,214,450
9,619,500
Net
3,235,650
3,222,400
3,263,210
9,721,260
3,272,750
3,219,750
53,000
3,227,700
53,000
3,280,700
9,775,850
USD
GBP
GBP