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You are speculating on appreciation of the . You purchase call options on 62,500 with a strike price of $1.2 = 1.00. The options

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You are speculating on appreciation of the . You purchase call options on 62,500 with a strike price of $1.2 = 1.00. The options position costs a total of $7,000. The current spot rate is $1.35 = 1.00. At what exchange rate will you break-even from the option position?

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