Question
Brian Tull sold a put option on Canadian dollars for $.02 per unit. The strike price was $.75, and the spot rate at the time
Brian Tull sold a put option on Canadian dollars for $.02 per unit. The strike price was $.75, and the spot rate at the time the option was exercised was $.80. Assume Brian immediately sold off the Canadian dollars received when the option was exercised. Also assume that there are 50,000 units in a Canadian dollar option. What was Brian's net profit on the put option?
$4,000
$3,750
$3,500
$3,000
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Get StartedRecommended Textbook for
Introduction to Finance Markets Investments and Financial Management
Authors: Melicher Ronald, Norton Edgar
15th edition
9781118800720, 1118492676, 1118800729, 978-1118492673
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