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Alice sold a put option on Japanese Yen for $.000315 per unit. The exercise price was $.0080, and the spot rate at the time the
Alice sold a put option on Japanese Yen for $.000315 per unit. The exercise price was $.0080, and the spot rate at the time the yen option was exercised was $.00763. Assume there are 120,051,250 units in a yen option contract. What was Alice's per-unit net profit on the option contract? What was Alices total net profit on the option contract? Calculate the break-even spot rate (at expiration) for Alice. Discuss (briefly) the answer.
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