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A currency dealer is considering trading between Australian dollar ( AUD ) and Norwegian Krone ( NOK ) . A put option allows the holder

A currency dealer is considering trading between Australian dollar (AUD) and Norwegian Krone (NOK). A put option allows the holder to sell NOK400000 now at an exercise exchange rate of 0.2540(AUD/NOK). If the premium paid is 0.7 Australian cents for each NOK, calculate the net payoff at the following spot exchange rates (in AUD/NOK) :
(a)0.2410(2)
(b)0.2786(2)
(c)0.1856(2)
(d) At what exchange rate will the holder break even

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