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For problems I 6 , 1 7 , and 1 8 , determine the profit from the following basic foreign currency option transactions for each
For problems I and determine the profit from the following basic foreign currency option transactions for each of the following spot rates at expiration: $ $ $ $ and $ Construct a profit grapht. Find the breakeven spot rate at expiration. Assume that each contract covers euros.
A call option on the euro expiring in six months has an exercise price of $ and is priced at $ Construct a simple long position in the call.
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