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3. (Ch. 5) Selling Currency Call Options. Julio Soto sold a call option on New Zealand dollars (NZD) for USD .03 per unit. The strike

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3. (Ch. 5) Selling Currency Call Options. Julio Soto sold a call option on New Zealand dollars (NZD) for USD .03 per unit. The strike price for NZD was USD 75 (the exchange rate we use is NZDUSD), and the spot rate at the time the option was exercised was USD 71. Assume Mr. Soto did not obtain NZD until the option was exercised. Also, assume that there are 50,000 units in an NZD option. What was Mr. Soto's net profit on the call option? (4 points)

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