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Q1: If Jasim purchase a put option on Canadian dollar from Sara for a premium of 0.03, with an exercise price of 0.42. The option

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Q1: If Jasim purchase a put option on Canadian dollar from Sara for a premium of 0.03, with an exercise price of 0.42. The option will not be exercised until the expiration date, if at all. If the spot rate on the expiration date is 0.37. a) What is the net profit for Jasim and Sara per unit? (1 mark) SZERE- ---ODDELEEEEEEEEEE -OOOOOOOOOOOOOOOOOOOOOOOOO SEBEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE b) If you know that one option contract represents 20000 units, what is the total net profit for Jasim and Sara? (1 mark) OOOOOOOOOOOOOOOOOOOOO

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