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A put option contract on Canadian dollars ( CAD ) specifies the following information: Put option premium on Canadian dollar = $ 0 . 0
A put option contract on Canadian dollars CAD specifies the following information:
Put option premium on Canadian dollar $ per unit
Strike price $
One option contract represents units
A speculator who had purchased this put option decided to exercise the option shortly before the expiration date, when the spot rate of the option was $ The speculator purchased the Canadian dollars in the spot market at that time.
A Given this information, compute the net profit to the buyer and seller of the put option.
B Draw the contingency graphs for buyer and seller.
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