Question
An option trader purchased a call option on Russian ruble () with a strike price of $0.01350/, at a premium of 0.00040 dollars per ruble
- An option trader purchased a call option on Russian ruble () with a strike price of $0.01350/, at a premium of 0.00040 dollars per ruble and with an expiration date three months from now. The option is for 2,500,000.
(a) What would be the traders profit or loss if the spot rate at maturity is $0.01310/?
(b) What would be the traders profit or loss if the spot rate at maturity is $0.01380/?
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Cornerstones Of Financial Accounting
Authors: Bertrand Piccard, Jay Rich, Jeff Jones, Maryanne Mowen, Don Hansen, Nick Jones
1st Edition
0324657730, 9780324657739
