Question
John sold a call option on Euro for $.04 per unit. The strike price was $1.30, and the spot rate at the time the option
John sold a call option on Euro for $.04 per unit. The strike price was $1.30, and the spot rate at the time the option was exercised was $1.32. Assume John bought the Euro from the market if the option was exercised. Also assume that there are 40,000 units in a Euro option. What was Johns net profit on the call option?
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Practical Financial Management
Authors: William R. Lasher
7th edition
128560721X, 9781133593669, 1133593682, 9781285607214, 978-1133593683
