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Choose the correct answer? Question Completion Status: Question 1 of 14 Moving to...

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Finance

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Question Completion Status: Question 1 of 14 Moving to the next question prevents changes to this answer Question 1 2 points S. The current spot exchange rate is $1.45 = 1.00 and the three-month forward rate is $1.40 = 1.00. Consider a three-month American call option on 62,500 with a strike price of $1.50 = 71 00. Immediate exercise of this option will generate a profit of 56.125 negative profit, so exercise would not occur 53.125 $6.125/(1is3/12 Question 1 of 14 Moving to the next question prevents changes to this answer SPM

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