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You purchase a call option on Mexican pesos for a premium of $0.02 per unit, with an exercise price of $0.22; the option will not
You purchase a call option on Mexican pesos for a premium of $0.02 per unit, with an exercise price of $0.22; the option will not be exercised until the expiration date, if at all. If the spot rate on the expiration date is $0.11, your payoff is (round up to 2 decimal place, e.g. 0.06):
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