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1. Suppose you buy $100,000 worth of euro futures with a futures exchange rate of $1.10 per euro. If on expiration the spot exchange rate
1. Suppose you buy $100,000 worth of euro futures with a futures exchange rate of $1.10 per euro. If on expiration the spot exchange rate is $1.12, what is your profit or loss?
2. Suppose you buy a call option on a $100,000 worth of euros with an exercise price of $1.10 per euro for a premium of $1000. If on expiration the spot exchange rate is $1.12 per euro, what is your net profit or loss?
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