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Assume that JBK Corp. sells a put option on Canadian dollar with option premium $.02, exercise price $.55, and expiration date in three months. Suppose

Assume that JBK Corp. sells a put option on Canadian dollar with option premium $.02, exercise price $.55, and expiration date in three months. Suppose the future spot rate for Canadian dollar is $.56. What is the net profit?

A. $ -0.03

B. $ -0.02

C. $ 0.01

D. $ 0.02

E. $ 0.03

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