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A French exporter acquired a Put Option for 300,000 GBP. The agreed premium is 0.8 EUR/GBP for December 31st. The premium is 0.015 EUR/GBP. Guess

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A French exporter acquired a Put Option for 300,000 GBP. The agreed premium is 0.8 EUR/GBP for December 31st. The premium is 0.015 EUR/GBP. Guess if the French exporter, the holder of the Put Option, will execute it or not, in case that: a. The Spot Exchange Rate on Dec 31st is 0.85 EUR/GBP b. The Spot Exchange Rate on Dec 31st is 0.75 EUR/GBP Draw the profit diagram for the long put position

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