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First question: your gain is $2. Second question: the OW warrant cashes out at $35, so your loss is $5.

Posted by: RogerMore on Apr 16, 07:20 in response to MTC Koolaid anyone?'s post OW derivatives question for calulating loss or gain.

For calls and puts, we'll use an example from this week.

The strike price for the SCRM4 call and put is $40. As OW looks like being $20M, the strike price will not be met, so the call will cash out at 0.  If you are holding it long, you'll lose the whole investment.  The put will cash out at (strike price less actual OW box office), so $40-$20 = $20, and your gains will be $20 less the purchase price of the put.

OW derivatives question for calulating loss or gain. MTC Koolaid anyone? Apr 16, 06:40

First question: your gain is $2. Second question: the OW warrant cashes out at $35, so your loss is $5. RogerMore Apr 16, 07:20

ok thats what i thought. thanks! {nm} winstonman78 Apr 16, 07:35





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