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Today is the expiration day of a put option on the euro that you purchased three months ago when the spot rate was $1.1260/. The
- Today is the expiration day of a put option on the euro that you purchased three months ago when the spot rate was $1.1260/. The strike rate on the option is $1.1240/ and the premium was $0.0280/.
- What were the intrinsic value and the time value of the put at the time of purchase?
- If todays spot rate is $1.1220/, would you exercise? Why? How much would your payoff be (payoff is value of option position at expiration)? How much would your profit/loss be?
- Repeat part b above assuming todays spot rate is $1.1290/.
- At what expiration spot rate would you break even? PLEASE WRITE OUT EVERY STEP SO I CAN LEARN HOW TO DO THIS!
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Architects Of Austerity International Finance And The Politics Of Growth
Authors: Aaron Major
1st Edition
0804790736, 9780804790734
