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Assume the current spot rate of the euro is $1.32 and the forward rate for the euro is $1.30, while the annualized forward discount of
Assume the current spot rate of the euro is $1.32 and the forward rate for the euro is $1.30, while the annualized forward discount of the euro is -3.03%. How many days is the forward contract? Bulldog, Inc., has bought British pound call options at a premium of $.015 per unit, and an exercise price of $1.569 per unit. It has forecasted the Australian dollar's lowest level over the period of concern as $1.549, $1.559, $1.569, $1.579 and $1.589. Determine the net profit (or loss) per unit to Bulldog, Inc., if each Australia dollar each level occurs (show detailed analysis: follow the five steps in the teaching notes). Assume that a bank's ask rate on Euro is $1.1365 and bid-ask percentage spread is .5%, what is the bid price of Euro
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