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You are confident that the pound will increase against the U . S . dollar, so you purchase a call option on the pound with

You are confident that the pound will increase against the U.S. dollar, so you purchase a call option on the pound with a strike price of $116(currency price is quoted as 100 times the exchange rate). When you purchase the option the spot price is $116, and the pound move to $120. The currency option expires "in the money." Your gross profit is $ __________.

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