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A speculator is considering the purchase of five three - month Japanese yen call options with a striking price of 9 6 cents ( $
A speculator is considering the purchase of five threemonth Japanese yen call options with a striking price of cents $ per yen. The premium is cents per yen. The spot price is cents per yen and the day forward rate is cents per yen. The speculator believes the yen will appreciate to cents per yen over the next three months. Note the size of one yen contract is As the speculators assistant, determine the speculators profit if the yen appreciates to cents per yen. When you enter a positive number, it means a profit. If you enter a negative number, it means a loss.
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