A speculator sells a put option on Canadian dollars for a premium of $.03 per...
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Finance
A speculator sells a put option on Canadian dollars for a premium of $.03 per unit.
with an exercise price of $.98. The size of the option contact is C$50,000 and will not be
exercised until expiration if at all. If the spot rate for Canadian dollar is $.90 at expiration,
the net profit for the speculator is:
A.
$2500
B.
-$2500
C.
$49,989
D.
-$49,989
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