i think this question is wrong however in my opinion the correct anwser should be C which is even wrong because bid: price at which market makers want to buy and ask : price at which market makers want to sell
Hey Francesco. For this exercise it's just very important to keep in mind that we are writing an option which means that we are on the short side of the contract. If the stock price is equal to the strike price at expiration date, then we do not need to pay the long position anything. However, we will still receive the 5€ premium paid on both option, which is combined 10€. Let me know if anything is still unclear :)
Capital gain is only the money you get on the price of the bond (do not take the coupon payments into consideration). So you do (70 - 50)/50 = 0,4 , this is your change in bond price, which means a capital gain rate of +40%
WHAT'S UP WITH THATKARMA?