Question
A speculator is considering the purchase of four three-month British pound put options with a striking price of $1.50 per . the premium is $0.05
A speculator is considering the purchase of four three-month British pound put options with a striking price of $1.50 per . the premium is $0.05 per pound. The standard size of each option contract is 10,000 pounds.
A)what would be the speculator's profit if the pound appreciates to $1.60 per ?
B )Determine the future spot price at which the speculator will only break even?
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A First Course in Quantitative Finance
Authors: Thomas Mazzoni
1st edition
9781108411431, 978-1108419574
