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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 133/6. When the investor purchases the contract, the spot rate of the euro is equivalent to 134/. the premium is 44/ a) Assume the euro's spot price at the expiration date market price) is 124/ The investor's profit \/ b) Assume the euro's spot price at the expiration date (market price) is 137/ The investor's profit w c) What is the maximum loss Maximum loss W/ d) What the maximum profit Maximum profit = W/

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