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An investor is bearish on the euro and believes it will decrease agrinst 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 agrinst the Japanese Yen. The investor purchases a currency put option on the euro with a strike price (exchange rate) of YI35/C. When the investor purchases the contract, the spot rate of the euro is equlvalent to yi34/C the premium is y3/6 a) Assume the euras spot price at the expination dote (market price) is 125.C The iovestor's profit : Vie b) Assume the euross spot price at the eypation date (market price) is 8136/C The investors profit : Y: /C c) What is the maxamum loss Maximurn ioss = Vie: d) What the maximum profit Maximum profit = Vie

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