Mock exam afternoon - Derivatives question 10

CFA Level II
#1

Afternoon session, question 10

They value ithe option to purchase the oil terminal as an option, but they use a strike price of 30 (in the up-up state, value of the terminal is 39.675 and the value of the call is 9.675) even though in the problem it says they will have the option to purchase the terminal for 32.

why are they using a strike of 30 instead of 32?

#2

check out the errata it was updated. it’s given.

but in the addition it says the option to buy it for 30 EUR

#3

thanks bud the errata keeps getting updated!