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Bread Ltd. purchased Belarusian ruble call options for speculative purposes. If these options are exercised, Bread will immediately sell the Belarusian rubles in the spot
Bread Ltd. purchased Belarusian ruble call options for speculative purposes. If these options are exercised, Bread will immediately sell the Belarusian rubles in the spot market. Each option was purchased for a premium of $.04 per unit, with an exercise price of $.39. Bread plans to wait until the expiration date before deciding whether to exercise the options. Of course, Bread will exercise the options at that time only if it is feasible to do so. In the following table, fill in the net profit (or loss) per unit to Bread Ltd. based on the listed possible spot rates of the Belarusian ruble on the expiration date
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