ABC Corporation bought a put option on 500 P1000-par value XYZ Corp. preference shares at P1,525 each. ABC paid a premium of P15,000. The market price on the agreement date and on the exercise date are P1,520 and P1530 respectively. * Compute for the net gain or loss ?

Entrepreneurial Finance
6th Edition
ISBN:9781337635653
Author:Leach
Publisher:Leach
Chapter14: Security Structures And Determining Enterprise Values
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ABC Corporation bought a put option on 500 P1000-par value XYZ Corp. preference shares at P1,525 each. ABC paid a premium of P15,000. The market price on the agreement date and on the exercise date are P1,520 and P1530 respectively. * Compute for the net gain or loss ?

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