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An investor is bearish on the euro and believes it wil decrease ogainst 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 wil decrease ogainst the Japanese Yen. The investor purchases a currency put option on the euro with a strike price (exchange rate) of 131C. When the investor purchoses the contract, the spot rate of the euro is equivalent to 132/C. the premium is 2/. o) Assume the curos spot orice at the expiration date (muaket price) is 124 The investor's profit = XIC b) Assume the euro's soot otice at the expiration date (market price) is 8137/C The investor's profit " Yic c) What is the maximum loss Maximum loss = Y/C d) What the maximum profit Maximum profit = Vic

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