The put premium per British pound on March 1 is ($0.04,) the settlement date is September 19,
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The put premium per British pound on March 1 is \($0.04,\) the settlement date is September 19, and the strike price is \($1.80.\) A speculator anticipates that the spot rate for the pound will fall to \($1.72\) by September 19.
If the speculator’s expectations are correct, what would be his dollar profit from speculating two put options (£62,500)?
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