Question
Assume that you are a speculator who sells a put option on the euro (EUR) for a premium of $0.03 per unit, with an exercise
Assume that you are a speculator who sells a put option on the euro (EUR) for a premium of $0.03 per unit, with an exercise price of $1.00. A EUR option represents 125,000 units and the option will not be exercised until the expiration date, if at all. If the EUR spot rate is $0.95 on the expiration date, compute your net profit or loss.
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Finance Applications And Theory
Authors: Marcia Cornett, Troy Adair, John Nofsinger
6th Edition
1264101589, 9781264101580
