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Assume that a British pound put option has a premium of $.03 per unit and an exercise price of $1.60. The present spot rate is
Assume that a British pound put option has a premium of $.03 per unit and an exercise price of $1.60. The present spot rate is $1.61. The expected future spot rate on the expiration date is $1.52. The option will be exercised on this date, if at all. What is the expected per unit net gain (or loss) resulting from purchasing the put option?
please show steps, using the formula...
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