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Speculating with Currency Put Options. Bulldog, Inc., has sold Australian dollar put options at a premium of $.01 per unit, and an exercise price of
Speculating with Currency Put Options.
Bulldog, Inc., has sold Australian dollar put options at a premium of $.01 per unit, and an exercise price of $.76 per unit. It has forecasted the Australian dollars lowest level over the period of concern as shown in the following table. Determine the net profit (or loss) per unit to Bulldog, Inc., if each level occurs and the put options are exercised at that time.
Possible Value of Australian Dollar: $.72 .73 .74 .75 .76
what are the Net Profit (Loss) to Bulldog, Inc. if each Value Occurs
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