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Consider a investor purchasing a EUR currency call option with the following characteristics: contract size EUR62,500, exercise price is USD1.50/EUR option premium is USDO.01/EUR Suppose

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Consider a investor purchasing a EUR currency call option with the following characteristics: contract size EUR62,500, exercise price is USD1.50/EUR option premium is USDO.01/EUR Suppose on maturity the spot rate is USD1.65/EUR. Then the break-even price is and the profit obtained is when the option is exercised is a. USD1.51/EUR, USD8.750 b. USD 1.50/EUR USD625 c. USD1.65/EUR USDO d. USD1.66/EUR - USD625 e. None of the options in this question are correct

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