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A call option on Canadian dollars with a strike price of $ . 6 0 is purchased by a speculator for a premium of $
A call option on Canadian dollars with a strike price of $ is purchased by a speculator for a premium of $ per unit. Assume there are units in this option contract.
A If the Canadian dollars spot rate is $ at the time the option is exercised, what is the net profit per unit and for one contract to the speculator?
B What would the spot rate need to be at exercising time for the speculator to break even?
C What is the net profit per unit to the seller of this option?
D Draw a value and profit chart. Excel will help a lot.
YOU ONLY NEED TO DO D PLEASE USE EXCEL
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