ohai

CFASniper Wrote:
-------------------------------------------------------
> I think this question is best solved by
> elimination
>
> First off, you can rule out C because buying ATM
> put (this is where knowing current LIBOR helps) is
> going to be more expensive than buying a put at 3%
> strike (OTM).
>
> So, the puts in A & B will cost you the same
> amount as both have 3% strike.
>
> On the short call side, you will make more premium
> by selling a call that is deeper in the money.
> i.e. selling a call at strike 5% will fetch you
> more than a call at 4.5% (given current LIBOR is
> 4%)
>
> Therefore, my answer is
>
> B



sniper hold on soldier which is more valuable to you a call @ 4.5% or a call @ 5%?

i would think a call @ 4.5 no