Answered step by step
Verified Expert Solution
Question
1 Approved Answer
(Previous question continued) Refer to the table above. Assume you bought one SF put option with the strike price of $0.585/SF that expires in August.
(Previous question continued) Refer to the table above. Assume you bought one SF put option with the strike price of $0.585/SF that expires in August. If the spot rate becomes $0.6/SF at expiration, would you exercise your option, and what's your profit/loss? Note that the option cost you $0.005 per SF and one contract contains 62,500 SF. exercise; profit of $312.50 not exercise; profit of $312.50 exercise; loss of $312.50 not exercise; loss of $312.50 AUSTRALIAN DO AUTO-REFRESH IS OFF MONTH LAST CHANGE PRIOR SETTLE OPEN HIGH LOW VOLUME UPDATED JUN 2022 6AM2 0.7042 -0.0023 (-0.33%) 0.7065 0.70505 0.7076 0.70045 90,215 16:37:45 CT 20 May 2022 JUL 2022 6AN2 0.7045 -0.0024 (-0.34%) 0.7069 0.70285 0.70785 0.7026 10 16:37:59 CT 20 May 2022 AUG 2022 6AQ2 0.70405 -0.00315 (-0.45%) 0.7072 0.7034 0.70755 0.7024 6 16:37:58 CT 20 May 2022 SEP 2022 0.7059 -0.00155 (-0.22%) 0.70745 0.7057 0.70815 0.7015 495 16:39:25 CT 20 May 2022 6AU2 Refer to the table above. If you buy (long) one contract of the AUD futures maturing on Aug 2022, and assume that the AUD/USD spot rate will become $0.71/AUD in Aug 2022. What is your profit/loss going to be? Note that one contract contains 100,000 AUD. Loss of $595. Profit of $595. Loss of AUD595. Profit of AUD595
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started