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4 . Freddie is an option speculator. He anticipates the Danish kroner to appreciate from its current level of $ . 1 9 to $
Freddie is an option speculator. He anticipates the Danish kroner to appreciate from its current level of $ to $ Currently, kroner call options are available with an exercise price of $ and a premium of $ Should Freddie attempt to buy this option? If the future spot rate of the Danish kroner is indeed $ what is his profit or loss per unit?
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