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a) You own a put option on a Brambles share with an exercise price of $13. The option costs $0.50. The option will expire in

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a) You own a put option on a Brambles share with an exercise price of $13. The option costs $0.50. The option will expire in six months' time. i) If the share is trading at $9 in six months, what will be the profit of the put? (1 mark) ii) If the share is trading at $18 in six months, what will be the profit of the put? (1 mark) b) An investor buys a call option with a strike price of $40 for $2. What is the trader's maximum gain and maximum loss? (2 marks) c) In January, an investor enters into a short futures contract to sell 100 oz of gold at $1,860 per oz in April. Wrat would be the investor's gain or loss if the price of gold is as follows in April? i) $1,950 per oz (1 mark) ii) $1,750 per oz (1 mark) d) A U.S. company expects to pay 1 million Canadian dollars in six months. Explain how the exchange rate

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