Citigroup sells a call option on euros (contract size is 500,000) at a premium of $0.04 per

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Citigroup sells a call option on euros (contract size is €500,000) at a premium of $0.04 per euro. If the exercise price is $1.34 and the spot price of the euro at expiration is $1.36, what is Citigroup’s profit (loss) on the call option?

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Foundations Of Multinational Financial Management

ISBN: 9780470128954

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Authors: Alan C Shapiro, Atulya Sarin

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Question Posted: Dec 09, 2023 04:44 AM

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Citigroup sells a call option on euros (contract size is 500,000) at a premium of $0.04 per

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Since the spot price of 136 exceeds the exercise price of ...View the full answer

Foundations Of Multinational Financial Management

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