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Assume that the current spot rate of the Singapore dollar (S$) is $0.50. The following option information is available: Call option premium on Singapore dollar
Assume that the current spot rate of the Singapore dollar (S$) is $0.50. The following option information is available: Call option premium on Singapore dollar (S$) = $0.015 Put option premium on Singapore dollar (S$) = $0.009 Call and put option strike price = $0.55 One option contract represents S$70,000 Some possible euro values at option expiration are shown in the following table. $1.50 $2.00 Value of Euro at Option Expiration $0.90 $1.05 Call Put Net (1) determine the net profit per unit for each possible future spot rate
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