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David buys a put option on pound with a strike price of $1.8500/ at a premium of 2.60 per pound ($0.0260/) for an expiration date

David buys a put option on pound with a strike price of $1.8500/ at a premium of 2.60 per pound ($0.0260/) for an expiration date three months from now. The option contract is for 62,500. What is Davids gains/losses if the spot rate is $1.9700/?

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