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An investor is bearish on the euro and believes t 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 t will decrease against the Japanese Yen. The investor purchases a currency put option on the euro with a strike price (exchange rate) of Yt34/t. When the investor pucchases the contract, the spot rate of the euro is equivalent to y132je. the premium is yay. a) Assume the euros spot poce at the expiration date (maket price) is yiz3.C The imvestor's protit = FE b) Assume the euros spot nice at the expiration date (imarket pnce) is 136.e: Theitivesterl peoft = c) What is the maximum lose d) Whatrememaxirnum profic Mainitum pricitit in YiE

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