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28. Calculate your profit, in dollars, of the following trade: On 1/3 you short call options on 100,000 at a strike of $1.25 when the

28.

Calculate your profit, in dollars, of the following trade:

On 1/3 you short call options on 100,000 at a strike of $1.25 when the exchange rate is $1.26/. These options were priced at $0.04 per pound covered. On 6/15 these options mature and the exchange rate is $1.24/.

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$3,000

-$3,000

-$2,000

$4,000

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