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Emma sold a call option on Singapore dollars for A$0.01 per unit. The exercise price was A$0.85, and the spot rate at the maturity was
Emma sold a call option on Singapore dollars for A$0.01 per unit. The exercise price was A$0.85, and the spot rate at the maturity was A$0.90. Assume Emma did not obtain Singapore dollars until the option was exercised. Also assume that there are 60,000 units in a Singapore dollar option. What was Emmas net profit on the call option?
A. | A$ -2400 | |
B. | A$ 2400 | |
C. | A$ 3000 | |
D. | A$ -3000 | |
E. | A$ -6000 |
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