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(b) The existing spot rate of the Canadian dollar is $0.82. The premium on the Canadian dollar put option is $0.04. The exercise price is

(b) The existing spot rate of the Canadian dollar is $0.82. The premium on the Canadian dollar put option is $0.04. The exercise price is $0.81. The option will be exercised on the expiration date if at all. Suppose you wrote (i.e. sold) such an option. If the spot rate on the expiration date is $0.87, calculate (1) the profit and (ii) effective sale price of the Canadian dollar at expiration

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