Question
Call and put options on the Australian Dollar in Chicago are available with the following specifications: Strike Price : 1.04 Call Premium : 2.15c Put
Call and put options on the Australian Dollar in Chicago are available with the following specifications:
Strike Price : 1.04
Call Premium : 2.15c
Put Premium : 2.44c
Today's spot price of the Australian Dollar is AUD/USD 1.0474 If the spot price of the Australian Dollar turns out to be AUD/USD 1.08 at expiry what is the percentage return to a speculator from holding only:
the Call Option?
the Put Option?
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Fundamentals of Investing
Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk
12th edition
ISBN: 978-0133075403, 133075354, 9780133423938, 133075400, 013342393X, 978-0133075359
