Question 1. The training compensation on a allure discretion is $30 and the compensation of the underlying store is $35. The discretion procure decline in 35
days. The discretion is currently selling for $5.75.
a. Calculate the discretion's training compute?
b.Calculate the compute of the enhancement aggravate and overhead the training compute? Why is an investor procureing to pay past than the training
c. Is this an out-of-the currency, at-the-money, or in-the-currency discretion? Why?
d. What procure happen to the compute of the discretion if the underlying store compensation changes to $30? Why?
e. Is this an development of a seasoned allure discretion or a denuded allure discretion? Why?
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