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Carl is an option writer. In anticipation of a depreciation of the British pounds from its current level of $1.50 to $1.45, he has written
Carl is an option writer. In anticipation of a depreciation of the British pounds from its current level of $1.50 to $1.45, he has written a call option with an exercise price of $1.58 and a premium of $0.02. If the spot rate at the option's maturity turns out to be $1.53, what is Carl's payoff (assuming the buyer of the option acts rationally)
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