Question
Henrik's Options. Assume Henrik writes a call option on euros with a strike price of $1.2500/ at a premium of 3.80 per euro ($0.0380/) and
Henrik's Options. Assume Henrik writes a call option on euros with a strike price of $1.2500/ at a premium of 3.80 per euro ($0.0380/) and with an expiration date three months from now. The option is for 100,000.
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 $1.11/, rising to $1.35/ in increments of $0.04.
The profit or loss should Henrik exercise before maturity at a time when the euro is traded spot at $1.11/ is $__? (Round to the nearest cent and indicate a loss by using a negative sign.)
The profit or loss should Henrik exercise before maturity at a time when the euro is traded spot at $1.15/ is $__?
(Round to the nearest cent and indicate a loss by using a negative sign.)
The profit or loss should Henrik exercise before maturity at a time when the euro is traded spot at $1.19/ is $__?
(Round to the nearest cent and indicate a loss by using a negative sign.)
The profit or loss should Henrik exercise before maturity at a time when the euro is traded spot at $1.23/ is $__?
(Round to the nearest cent and indicate a loss by using a negative sign.)
The profit or loss should Henrik exercise before maturity at a time when the euro is traded spot at $1.27/ is $__?
(Round to the nearest cent and indicate a loss by using a negative sign.)
The profit or loss should Henrik exercise before maturity at a time when the euro is traded spot at $1.31/ is $__?
(Round to the nearest cent and indicate a loss by using a negative sign.)
The profit or loss should Henrik exercise before maturity at a time when the euro is traded spot at $1.35/ is $__?(Round to the nearest cent and indicate a loss by using a negative sign.)
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