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Rose sold a put option on Australian dollars for $0.03 per unit. The strike price was $0.78, and the market rate at the time the
Rose sold a put option on Australian dollars for $0.03 per unit. The strike price was $0.78, and the market rate at the time the option was exercised was $0.70. Assume Rose immediately sold the Australian dollars received when the option was exercised. a. What is the breakeven price? b. Draw the contingency profit graph for the seller of the put option.
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