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Ms. Coleman writes today - January 27, 2020, 5 European put contracts with the exercise price of CS1.9 = 1.0 and with the expiration date
Ms. Coleman writes today - January 27, 2020, 5 European put contracts with the exercise price of CS1.9 = 1.0 and with the expiration date of April 27, 2020. Each put size is 31,250. The put premium per is CS.02 and the relevant interest rate is 4% per annum
For the following spot exchange rates between CS and on April 27, 2020, denoted by ST, calculate profit (loss) of Ms. Coleman of writing or selling 5 puts: i ST: CS1.5 per ii. Sr: CS 2.1 per
Also find the break-even ST for Ms. Coleman.
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