Construct a simple long position in the put

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Reference no: EM13926136

1. A call option on the euro expiring in six months has an exercise price of $1.00 and is priced at $0.0385. Construct a simple long position in the call.

2. A euro put with an exercise price of $1.00 is priced at $0.0435. Construct a simple long position in the put.

3. Use the information in problem 14 to construct a euro covered call. Assume that the spot rate at the start is $0.9825.

Reference no: EM13926136

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