@FinanceKid In question 7 when we have 20 options which are a contract and we trade them at weighted average exercise price we receive $200 from the trade. If we then use $200 to buy shares (from the 20 options we just traded) we only get 8 shares. Why are we subtracting 8 shares from 20 options? Weren't the 20 options already used in the trade to get the 8 shares?
@FinanceKid In question 7 when we have 20 options which are a contract and we trade them at weighted average exercise price we receive $200 from the trade. If we then use $200 to buy shares (from the 20 options we just traded) we only get 8 shares. Why are we subtracting 8 shares from 20 options? Weren't the 20 options already used in the trade to get the 8 shares?
Please add new content for the new book