Selling Currency Call Options Mike Suerth sold a call option on Canadian dollars for $.01 per unit.
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Selling Currency Call Options Mike Suerth sold a call option on Canadian dollars for $.01 per unit. The strike price was $.76, and the spot rate at the time the option was exercised was $.82. Assume Mike did not obtain Canadian dollars until the option was exercised.
Also assume that there are 50,000 units in a Canadian dollar option. What was Mike’s net profit on the call option?
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Mehwish Aziz
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