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You are a speculator who sells a call option on Swiss francs for a premium of $0.03, with an exercise price of $0.64. The option
You are a speculator who sells a call option on Swiss francs for a premium of $0.03, with an exercise price of $0.64. The option will not be exercised until the expiration date, if at all. If the spot rate of the Swiss franc is $0.78 on the expiration date, your net profit per unit, assuming that you have to buy Swiss francs in the market to fulfill your obligation, is:
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