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Your friend is very good at currency forecasting and predicts that the Euro will appreciate from A$1.50 to A$1.56. To take advantage of this opportunity,

Your friend is very good at currency forecasting and predicts that the Euro will appreciate from A$1.50 to A$1.56. To take advantage of this opportunity, you decided to sell put options with an exercise price of A$1.54 at a premium of A$.02. If the spot rate at the options maturity turns out to be A$1.55, what is your profit/loss per unit (assuming the buyer of the option acts rationally)?

A.

A$-0.02

B.

A$-0.01

C.

A$0.00

D.

A$0.01

E.

A$0.02

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