Call options on futures.
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Call options on futures. DePaul Insurance Company purchased a call option on an S&P500 futures contract. The option premium is quoted as $6. The exercise price is 1430. Assume the index on the futures contract become 1440. Should DePaul exercise the call option or let it expire? What is the net gain or loss to DePaul after accounting for the premium paid for the option?
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Answers whether a call option on a future contract should be exercised.
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Call options on futures. DePaul Insurance Company purchased a call option on an S&P500 futures contract. The option premium is quoted as $6. The exercise price is 1430. Assume the ...
Purchase this Solution
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