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Carl is an option writer. In anticipation of a depreciation of the British pound from...

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Accounting

Carl is an option writer. In anticipation of a depreciation of the British pound from its current level of $1.50 to $1.45, he has written a call option with an exercise price of $1.51 and a premium of $0.04. If the spot rate at the option's maturity turns out to be $1.58, what is Carl's payoff (assuming the buyer of the option acts rationally)?

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