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3) Therefore, JPY will appreciate relative to GBP. Question 2 s out of 20 points S.C. Corporation has sold British pound call options with the

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3) Therefore, JPY will appreciate relative to GBP. Question 2 s out of 20 points S.C. Corporation has sold British pound call options with the exercise price of USD 1.5B/GBP at a premium USO 906/GBP Calculate and full out the following table. Copy the table to your answer. ST Will the buyer Exercise? Payoff at maturity to S.C Corp. Profit to S. Corp USD 1.54/GBP USD 1.58/GBP USD 1.62/GBP USD 1.66/GBP USD 1.70/GBP Selected Answer: IST Will the buyer exercise? Not Excercise. USD 1.54/GBP Exercise payoff at maturity to SC. Corp. Profit to S.C. Corp. USD O/GBP USD 0.00/GBP-USD 0.06/GBP -USD 0.06/GBP USD 158/GBP-USD 1.58/GBP USD0.00/GBP USD0.06/GBP USD O/GBP USD 0 06/GBP USD 1.62/GBP USD USD0.04/GBP-USD 0.06)GBP 1.58/GBP USD 0.04/GBP USDO02/GBP ORIGRP USDD 05/GBP USD 1.58/GBP Exercise ISO 1.62/GBP

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