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Facebook (FB) currently trades at $194.00. You purchase a 16 month European $8.00 strike call option...

Facebook (FB) currently trades at $194.00. You purchase a 16 month European $8.00 strike call option on a short futures contract on one share of FB. The futures delivery date is 29 months from now and the delivery price is $233.00. The risk-free rate is 5.1%. Compute the range of prices of FB 16 months from now that will make you want to exercise your option.

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jeff jeffy answered 1 week ago
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