You enter into an exchange option contract where you have the right to give up 5 shares of IBM stock in exchange for one share of Google in three months.After three months,IBM is trading at $92 per share while Google is at $430.The payoff at maturity is
A) $- 30$
)
B)Zero.
C) $+ 6$
)
D) $+ 30$
)

Question

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The Answer of You enter into an exchange option contract where you have the right to give up 5 shares of IBM stock in exchange for one share of Google in three months.After three months,IBM is trading at $92 per share while Google is at $430.The payoff at maturity is
A) $- 30$
)
B)Zero.
C) $+ 6$
)
D) $+ 30$
)

You Enter into an Exchange Option Contract Where You Have −30- 30−30

You Enter into an Exchange Option Contract Where You Have $- 30$