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a 9. Calling All Profits. Consider an American call option on New Zealand dollars (NZ$) with a strike price of $0.8100/NZ$ traded at a premium

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a 9. Calling All Profits. Consider an American call option on New Zealand dollars (NZ$) with a strike price of $0.8100/NZ$ traded at a premium of $0.0192 per NZ$ and with an expiration date three months from now. The option is for NZ$100,000. a. Suppose that you have bought such a call option. Plot your profit or loss on a graph should you exercise before maturity at a time when the NZ$ is traded spot at between $0.7000/NZ$ and $0.9200/ NZ$. Find the break-even exchange rate. b. Repeat (a) if you have sold such a call option. a a

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