Use put-call parity to verity the call option price from, Ask an Expert

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Use put-call parity to verity the call option price from question 6 and the put option price from question 7 are valid since they are both based on the same underlying stock with the same maturity.

1. Today, you purchased a futures contract obligating you to purchase 100 troy ounces of gold for $1,220 per ounce any time over the next month. The current price of gold is $1,218. Assume the spot price of gold falls to $1,216 tomorrow. What will be your cash flow tomorrow for this contract?

2. Last week, you sold a futures contract on 5,000 troy ounces of silver at a settle price of $16.59. Today, your contract closed at the daily settlement price of $16.62. What amount will you receive from the contract purchaser for the delivery? Assume yesterday’s settle price was $16.66.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92747451

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