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Henrik's Options. Assume Henrik buys a call option on euros with a strike price of $1.2500=1.00 at a premium of 3.80 cents per euro (
Henrik's Options. Assume Henrik buys a call option on euros with a strike price of $1.2500=1.00 at a premium of 3.80 cents per euro ( $0.0380 per ) and with an expiration date three months from now. The option is for 100,000 euros. Calculate Henrik's profit or loss should he exercise before maturity at a time when the euro is traded spot at strike prices beginning at $1.11=1.00, rising to $1.29=1.00 in increments of $0.03. The profit or loss should Henrik exercise before maturity at a time when the euro is traded spot at $1.11/ is $ (Round to the nearest cent and indicate a loss by using a negative sign.)
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