Question
Untitled Rider Corporation sells EUR call options with a strike price of USD 1.50. The option premium is USD 0.03 per currency unit. A financial
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Rider Corporation sells EUR call options with a strike price of USD 1.50. The option premium is USD 0.03 per currency unit. A financial analyst at Rider forecasts the following possible values for spot EURUSD at maturity. Calculate payo? and profit (per currency unit) for each of these spot values.
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Shale Corporation purchases BRL put options with a strike price of USD 0.50. The option premium is USD 0.02 per currency unit. A financial analyst at Shale forecasts the following possible values for spot BRLUSD at maturity. Calculate payo? and profit (per currency unit) for each of these spot values.
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Sheila Corporation sells MXN put options with a strike price of USD 0.10. The option premium is USD 0.005 per currency unit. A financial analyst at Sheila forcasts the following possible values for spot MXNUSD at maturity. Calculate payo? and profit (per currency unit) for each of these spot values.
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