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Wrong EOC answer! #7 of Reading 40 (Currency Risk Mgt)
Anyone found that the calculation to the #7 EOCQ of Reading 40 was wrong?
The [insured with call 155] and [insured with call 160] are all using $1.5/pound to calculate the option premium instead the $1.55/pound and $1.6/pound respectively, leading to the last columns of the answer table full of wrong numbers.
The option premium should be found with the formula of {(principle in $/strike price)*(option price in $ / strike price)}, i.e., the premium should change with strike price applied, 150, 155, then 160.
After correction, I’ve got following numbers:
[Exchange Rate, $/pound] [insured with call 155] [insured with call 160]
1.3 11,445 11,509
1.4 10,621 10,685
1.5 9,906 9,971
1.6 9,584 9,346
1.7 9,584 9,346
1.8 9,584 9,346
Anyone can confirm my recalculated results? |
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发表于 2013-4-2 14:08
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