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October 2015 Q5 part v

Discussion in 'SP9' started by Sponge, Sep 17, 2017.

  1. Sponge

    Sponge Member

    the solutions mention a €23m premium. I can't seem to calculate this.

    How did this number come about?
     
    Sponge, Sep 17, 2017
    #1
  2. Simon James

    Simon James ActEd Tutor Staff Member

    In part (iv), you verified that the premium for the put is 2.3%. The fund value is €1,000m so 2.3% x €1,000m = €23m.
     
    Simon James, Sep 18, 2017
    #2

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