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I need help with questions 3 and 4 1-2 Amber McClain is a currency speculator and she SELLS eight futures contracts 1 N/A -76,00o 6S,000
I need help with questions 3 and 4
1-2 Amber McClain is a currency speculator and she SELLS eight futures contracts 1 N/A -76,00o 6S,000 500,000 pesos at the settle price of $o.108/Ps. What is the value of her position at maturity if the ending spot rate is $0.127/ps? 00 What is the value of her position at maturity if the ending spot rate is SO 091/Ps? 8-4 Peleh, a Japan based investor, WRITES a put option on dollar with a strike price of Y125/$ at a premium of Y1.38/$ and with an expiration date six month from N/A now. The option is for $100,000. What is Peleh's NET profit or loss (in X) at maturity if the ending spot rates are: ?? 117.30/$ ? *132.10/5? -10 Assume you BOUGHT a call option on euros has a strike price of $1.275/ at a premium of 8c per euro ($0.08/) and with an expiration date three months from now. N/ 5 What is INTRINSIC VALUE of this option if euros are trading at $1.111/? what is TIME PREMIUM of this option if euros are trading at $1.290/? Calculate your GROSS profit or loss should you exercise before maturity at a time when the euro is trading at $1.150/. (Note: If you would not exercise, your gross profit would be zero.) 8 Calculate your NET profit or loss should you exercise before maturity at a time ir trading at $1.150/Step by Step Solution
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