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2. Suppose Company A bought a call option for $0.03 per euro, with a spot rate of leuro to $1.0872, the strike price 30-days
2. Suppose Company A bought a call option for $0.03 per euro, with a spot rate of leuro to $1.0872, the strike price 30-days forward is 1 euro to the US$ is 1.0915. If the spot rate 30 days from now is $1.0920, determine the profit/loss on the call option for $1.0910, $1.0915, $1.0918 and $1.0920. Contract size is 62,500 euros. (10 points) (Ch 8)
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Understanding financial statements
Authors: Lyn M. Fraser, Aileen Ormiston
9th Edition
136086241, 978-0136086246
