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2. Consider a put option on the euro with a strike price of $1.5/ and a premium of $0.3/. The face amount of a euro
2. Consider a put option on the euro with a strike price of $1.5/ and a premium of $0.3/. The face amount of a euro option is 62.500.
iii. Calculate the profit/losses from the put option assuming the exchange rate at expiration is:
a. $1.43/
b. $1.47/
c. $1.50/
d. $1.53/
e. $1.56/
f. $1.60/
iv. Draw the profit/loss diagram for (iii).
2. Consider a put option an the euro with s strike price of $1.50/E and a premium of $0,3/. The face amount of a eure option is 62,500. iit. Calculate the profits/losses from the put option assuming the exchange rate at expiration is a. $1.43/E. b. $1.47/. c. $1.50/6 d. $1.53/. e. $1.56/6. f. $1.60/ fi. Draw the profit/Lass diagrim for (i4). 2. Consider a put option an the euro with s strike price of $1.50/E and a premium of $0,3/. The face amount of a eure option is 62,500. iit. Calculate the profits/losses from the put option assuming the exchange rate at expiration is a. $1.43/E. b. $1.47/. c. $1.50/6 d. $1.53/. e. $1.56/6. f. $1.60/ fi. Draw the profit/Lass diagrim for (i4)Step by Step Solution
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