Question
Henrik's Options. Assume Henrik writes a call option on euros with a strike price of $1.2500/euro at a premium of 3.80cents per euro ($0.0380/euro) and
Henrik's Options. Assume Henrik writes a call option on euros with a strike price of $1.2500/euro at a premium of 3.80cents per euro ($0.0380/euro) and with an expiration date three months from now. The option is for euro100 comma 000. 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 $1.10/euro, rising to $1.34/euro in increments of $0.04. The profit or loss should Henrik exercise before maturity at a time when the euro is traded spot at $1.10/euro is $ nothing. (Round to the nearest cent and indicate a loss by using a negative sign.)
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