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Pleae solve A- D and explain answer On July 2 , the two-month futures rate of the Mexican peso contained a 3 percent discount (unannualized).
Pleae solve A- D and explain answer
On July 2 , the two-month futures rate of the Mexican peso contained a 3 percent discount (unannualized). The spot rate of the Mexican peso was 50.051. There yas a call option on pesos with an exercise price that was equal to the spot rate. There was also a put option on pesos with an exarcise price equal to the spot ate. The premium on each of these options was 4 percent of the spot rate at that time. On September 2 , the option expired. You exarcised the option an this late if it was feasible to do so, On September 2, the spot rate of the Mexican peso was $0.049. What was your net profit per unit if you had purchased the call option? Use a minus sign to enter loss values, If any. Round your answer to four decimat places. 5 What was your net profit per unit if you had purchased the put opton? Use a minus sign to enter loss values, if any. Round your answer to four decimal places. 5 What was your net profit per unit if you had purchased a futures contract on July 2 that had a settiement date of 5 eptember 27 Use a minus sign to enter loss values, if any. Round your answer to four decimal places. 5 What was your net profit per unit if you sold a futures contract on July 2 that had a settlement date of September 2? Use a minus sign to enter ioss values, if any. Round your answer to four decinal places Step by Step Solution
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