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Six months ago you bought a dollar call option because you knew you would need dollars in August. The strike price of the option is
Six months ago you bought a dollar call option because you knew you would need dollars in August. The strike price of the option is 1/$. If at maturity, the spot rate is 0.9/ $, what do you do with the option? At what rate will you buy dollars?
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Financial Markets and Institutions
Authors: Frederic S. Mishkin, Stanley G. Eakins
5th edition
