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Arctor is expecting that the euro either will sharply increase or sharply decrease against the Japanese Yen. The investor purchases 2 options a curency put

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Arctor is expecting that the euro either will sharply increase or sharply decrease against the Japanese Yen. The investor purchases 2 options a curency put option on the euro with a strike price (exchange rate) of 127. When the investor purchases the contract, the spot rate of the euro is equivalent to 126/ the premium is 2/ 2) a currency call option on the euro with a strike price (exchange rate) of 1271. When the investor purchases the contract, the spot rate of the euro is equivalent to 126/ the premium is 12 - Assume the euro's spot price at the expiration date market price is $138/ The investor's profit WE Assume the euro's spot price at the expiration date market price) is W114/6 The investor's profit ME What the maximum loss Marmumlossa VE

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