Question
You are a speculator who sells a call option on Swiss francs for a premium of $0.01, with an exercise price of $0.61. The option
You are a speculator who sells a call option on Swiss francs for a premium of $0.01, with an exercise price of $0.61. The option will not be exercised until the expiration date, if at all. If the spot rate of the Swiss franc is $0.67 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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Public Finance A Contemporary Application Of Theory To Policy
Authors: David N. Hyman
5th Edition
0030113172, 978-0030113178
