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B. Consider an American call option on New Zealand dollars (NZ$) with a strike price of ( $ 0.8100 / N Z $ ) traded

image text in transcribed B. Consider an American call option on New Zealand dollars (NZ\\$) with a strike price of \\( \\$ 0.8100 / N Z \\$ \\) traded at a premium of \\( \\$ 0.0192 \\) per \\( N Z \\$ \\) and with an expiration date three months from now. The option is for \\( \\mathrm{NZ} \\$ 100,000 \\). Suppose that you have bought such a call option. a. Plot your profit or loss on a graph should you exercise before maturity at a time when the NZ\\$ is traded spot at between \\( \\$ 0.7000 / \\mathrm{NZ} \\$ \\) and \\( \\$ 0.9200 / \\mathrm{NZ} \\). (10 Marks) b. Find the break-even exchange rate. 0.8992

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