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You are a speculator who sells a put option on Australian dollars for a premium of $0.03 per unit, with an exercise price of $0.79.
You are a speculator who sells a put option on Australian dollars for a premium of $0.03 per unit, with an exercise price of $0.79. The option will not be exercised until the expiration date, if at all. If the spot rate of the Canadian dollar is $0.96 on the expiration date, your payoff per unit is (round up to 2 decimal place, e.g. 0.06)
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