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An investor bought a call option on Mexican pesos for $0.0002 per unit. The option has a strike price of $0.058 and covers 100,000 pesos.
An investor bought a call option on Mexican pesos for $0.0002 per unit. The option has a strike price of $0.058 and covers 100,000 pesos. Assume that the option can only be exercised on its expiration date.
What will be the net profit (or loss) to the investor if the exchange rate is $0.05 per peso on the expiration date (in USD)?
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