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Carl is an option seller. in anticipation of a depreciation of the British pound from its current level of $1.50 to $1.45, he has written
Carl is an option seller. in anticipation of a depreciation of the British pound from its current level of $1.50 to $1.45, he has written a call option with an exercise price of $1.51 and a premium of $0.02. if the spot rate at the options maturity turns out to be $1.54, what is carls profit or loss per unit (assuming the buyer of the option acts rationally)?
a) -$0.02
b) $0.02
c) $0.01
d) -$0.01
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