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Assume a call option is written with a strike price of $1.25/ at a premium of 3.80 cents per euro ($0.0380/) and with an expiration
Assume a call option is written with a strike price of $1.25/ at a premium of 3.80 cents per euro ($0.0380/) and with an expiration date three months from now. The option is for 100,000. Calculate your profit or loss should you exercise before maturity at a time when the euro is traded spot at the following: (with calculation and explanation) a) $1.10/ b) $1.15/ c) $1.20/ d) $1.25/ e) $1.30/ f) $1.35/
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