Question
Randy Rudecki purchased a call option on British pounds for $0.07 per unit. The strike price was $1.39 and the spot rate at the time
Randy Rudecki purchased a call option on British pounds for $0.07 per unit. The strike price was $1.39 and the spot rate at the time the option was exercised was $1.43. Assume there are 32,650 units in a British pound option. What was Randy's net profit on this option? Use a minus sign to enter loss values, if any. Round your answer to the nearest cent.
$
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Multinational Business Finance
Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett
14th edition
133879879, 978-0133879872
