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You purchased a Europes option contract to buy 5000 UK pound.... 3. You purchased a European foreign exchange option contract to buy 5000 UK pound

You purchased a Europes option contract to buy 5000 UK pound.... image text in transcribed
3. You purchased a European foreign exchange option contract to buy 5000 UK pound at the price of $1.27/E which expires today. You have paid $250 for the contract. Suppose the spot rate on the expiration date, today, is $1.29/f, what will be your optimal decision for the contract (exercise or not exercise)

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