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Alexandra, a speculator, purchases a put option on Swedish Krona (SEK) with a strike price (i.e., exercise price) of $0.11/SEK for $0.009 per unit. A
Alexandra, a speculator, purchases a put option on Swedish Krona (SEK) with a strike price (i.e., exercise price) of $0.11/SEK for $0.009 per unit. A Swedish Krona option represents 125,000 units. At the time of the purchase, the spot rate of the Swedish Krona is $0.12 and continually rises to $0.14 by the expiration date. What is Alexandra's highest net profit possible based on the information above? (A similar question has been discussed in the PPT slides.) -$4,875. +$2,625. -$1,125. +$3,750
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