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1. Consider a call option on the euro with a strike price of $1.52/ and a premium of $0.02/. The face amount of a euro

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1. Consider a call option on the euro with a strike price of $1.52/ and a premium of $0.02/. The face amount of a euro option is 62,500.

i. calculate the profits/losses from the call option assuming the exchange rate at expiration is:

a. $1.46/

b. $1.48/

c. $1.52/

d. $1.54/

e. $1.56/

ii. draw the profit /loss diagram for (i)

1. Cotikitler it ciell thetion on tho euro wath a strike prise of th 1 side and a prestitim of $0.02/4. The Eace amenant of a curo uphion is cod.tof 1. C 4 culate the profised lesses from the oall ngticir navunting the exchithge rate at experation is: a. $146/6. b. 51486 C. 51.5218. d. $1:47 . e. 56/e

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