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In anticipation of a depreciation of the British pound you decide to write a single call option with an exercise price of $1.19 and a
In anticipation of a depreciation of the British pound you decide to write a single call option with an exercise price of $1.19 and a premium of 0.49. Each option contract covers 62,500 british pounds. If the spot rate at the options maturity turns out to be $1.13 , what is your total profit loss for the call option contract ( assuming the buyer of the option acts rationally?)
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