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In March, a speculator who is gambling that the yen will depreciate against the dollar pays $680 to buy a yen June put option. This
In March, a speculator who is gambling that the yen will depreciate against the dollar pays $680 to buy a yen June put option. This put gives the speculator the right to buy 6,250,000 in June at an exchange rate /$ of 0.0081. By the expiration data, the yen spot rate has declined to 0.0079. What is the investor's net return on the contract?
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