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c ) If the spot exchange rate turns out be the 1 3 5 Canadian cents / USD on April 1 9 th , what
c If the spot exchange rate turns out be the Canadian cents USD on April th what would be the profit or loss for the following positions? Note that each option contract trades US dollars. A A long position in one call contract. B A short position in two call contracts. C A long position in one put contract. D A short position in two put contracts.
d Draw the profit diagram for a short position in the put. And show the critical points such as the maximum profit or loss, crossover points on axes and the strike exchange rate.
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