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Lucia works as treasurer of Mucho-Cambio, an international financial broker/investment house located in London. Her latest speculative position is to profit from his expectation that
Lucia works as treasurer of Mucho-Cambio, an international financial broker/investment house located in London. Her latest speculative position is to profit from his expectation that the Spanish peseta (Pta)will drop significantly against the British pound (). The current spot rate is 180.620/Pta. She must choose Prtwan the following 180-day options on the Spanish peseta: If Lucia buys 20 call contracts on Spanish pesetas in the London Exchange (one option contract consists of 10,000 pesetas), what is Lisa's net profit (including premium) if the spot rate at the end of 180 days is 181.397/Pta? Round to the nearest 0.01; Do not use sign; do not use commas to separate thousands. Use the negative sign in front of first digit if the value you find is negative. Your
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