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One year ngo, you sold a put option on 100,000 eutos with on expiration date of one year. You received a premium on the put

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One year ngo, you sold a put option on 100,000 eutos with on expiration date of one year. You received a premium on the put option of 10.02 per unit the exercise price was $1.28, Assume that one vear ago, the spot rate of the euro was $1.26, the one-year forward rate exhibited a discount of 3 pertent, and the one-year futures price was the same as the one-year forward rate. From one year ago to today, the euro depreciated against the doliar ty 5 percent. Foday the put option will be exercised (if it is feasible for the buyer to do so). a. Determine the total dollar amount of your profit or loss from your position in the put eption, Enter your answer as a positive value. Round your answer to the nearest dollar The total b. Now assume that instead of taking a position in the put option one year ago, you sold a futures contract on 100,000 euros with a settiement date of one year. Determine the total dollar amount of your profit or loss. Enter your answer as a positive value. Round your answer to the nearest dollar. The total is 5

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