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( Mini - case ) A speculator is considering the purchase of 5 three - month Japanese yen PUT options with a striking price of
Minicase A speculator is considering the purchase of threemonth Japanese yen PUT options with a striking price of cents $ per yen. The premium is cents per yen. The spot price is cents per yen and the day forward rate is cents per yen. The speculator believes the exchange rate will be cents per yen over the next three months. Note the size of one yen contract is As the speculator's assistant, determine the speculator's profit if the exchange rate is indeed cents per yen Please keep one decimal, eg There is no need to use currency symbol in this question since your balance is measured in US $
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