South African Financial System
ECS2605
ASSIGNMENT 04 SEMESTER 01 2023
TRUE
Put option gives the buyer the right to sell but not the obligation.
In the money when X > S
MV = NV x (1 + i x n)
= R3 000 000 x (1 + 0,055 x 91/365)
= R3 041 136.986
PV = MV/(1 +i x n)
= 3 041 136.986/(1 + 0.0600 x 55/365)
= 3 014 010.888
ECS2605
ASSIGNMENT 04 SEMESTER 01 2023
TRUE
Put option gives the buyer the right to sell but not the obligation.
In the money when X > S
MV = NV x (1 + i x n)
= R3 000 000 x (1 + 0,055 x 91/365)
= R3 041 136.986
PV = MV/(1 +i x n)
= 3 041 136.986/(1 + 0.0600 x 55/365)
= 3 014 010.888
