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7. Bulldog, Inc., has sold Australian dollar call options at a premium of $.02 per unit, and an exercise price of $.89 per unit. It
7. Bulldog, Inc., has sold Australian dollar call options at a premium of $.02 per unit, and an exercise price of $.89 per unit. It has forecasted the Australian dollars rate over the period of concern as $.86, $.87, $.88, $.89, $.91 and $.92. Determine the net profit (or loss) per unit to Bulldog, Inc., if Australia dollar each level occurs (show detailed analysis; follow the five steps in the teaching notes). please show how to do it...
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