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An investor is bearish on the euro and believes it will decrease against the Japanese Yen. The investor purchases a currency put option on the

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An investor is bearish on the euro and believes it will decrease against the Japanese Yen. The investor purchases a currency put option on the euro with a strike price (exchange rate) of 131/. When the investor purchases the contract, the spot rate of the euro is equivalent to 132/, the premium is 2/ a) Assume the euro's spot price at the expiration date market price) is $120/ The investor's profit JMC b) Assume the euro's spot price at the expiration date market price) is 1138/6 The inwestor's profit c) What is the maximum loss Maximum loss VIE d) What the maximum profit Maximum profit WE

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