Question
Kiko Peleh writes a put option on Japanese yen with a strike price of $ 0.008000 divided by yen $0.008000/ ( yen 125.00 divided by
Kiko Peleh writes a put option on Japanese yen with a strike price of $ 0.008000 divided by yen $0.008000/ ( yen 125.00 divided by $ 125.00/$) at a premium of 0.0080 cents 0.0080 per yen and with an expiration date six month from now. The option is for 12 comma 500 comma 000 12,500,000. What is Kiko's profit or loss at maturity if the ending spot rates are yen 110 divided by $ 110/$, yen 116 divided by $ 116/$, yen 121 divided by $ 121/$, yen 125 divided by $ 125/$, yen 130 divided by $ 130/$, yen 134 divided by $ 134/$, and yen 140 divided by $ 140/$.
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