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16. Citibank buys a call option on EUR/USD at a premium of USD 0.05 per EUR. Contract size is EUR 1 million. Exercise price is

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16. Citibank buys a call option on EUR/USD at a premium of USD 0.05 per EUR. Contract size is EUR 1 million. Exercise price is 1.40 and spot at option expiration is 1.50. What is Citibank's profit on the call option? a) loss of $50,000 b) profit of $50,000 c) profit of $100,000 d) break even (0)

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