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Today is the expiration day of a call option on the British pound that you purchased two weeks ago when the spot rate was $1.2190/.

Today is the expiration day of a call option on the British pound that you purchased two weeks ago when the spot rate was $1.2190/. . The strike rate on the option is $1.2084/ and the premium was $0.0260/.

calculating your payoff at expiration. How much would your profit/loss be? (Please answer questions in the order given).

At what expiration spot rate would you break-even?

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