Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. i have some euros in my bank account (currently: e

I have some euros in my bank account (Currently: euro = $1.50). I also bought a...

80.2K

Verified Solution

Question

Finance

I have some euros in my bank account (Currently: euro = $1.50).I also bought a put option on euro (X=$1.50, Premium=$0.02). a.Draw the combined graph. b. What is the name of this strategy? Whatis the objective with this strategy? c. How many break even pointsare there? What is (are) the break even point(s)? d. IfST=$1.35/euro just before expiration, what is my profit? e. IfST=$1.60/euro just before expiration, what is my profit?

Answer & Explanation Solved by verified expert
4.1 Ratings (733 Votes)
pay off from Put Option MAX strike price stock price 0 premium per share MAX 150 stock price 0 002Pay off from Asset holding Stock price    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

I have some euros in my bank account (Currently: euro = $1.50).I also bought a put option on euro (X=$1.50, Premium=$0.02). a.Draw the combined graph. b. What is the name of this strategy? Whatis the objective with this strategy? c. How many break even pointsare there? What is (are) the break even point(s)? d. IfST=$1.35/euro just before expiration, what is my profit? e. IfST=$1.60/euro just before expiration, what is my profit?

Other questions asked by students

Psychology
1.2K views

The two child maltreatment prevention studies discussed at the end of this chapter focused on altering...

Psychology
1.2K views

Because you have done excellent work on various projects here at Emeraldi, the vice president and...

Biology
1.2K views

Homer and his Little League team The Bernstein Bears play against the opposing team The...

Basic Math
1.2K views

POPULATION PYRAMID Age Groups 95 9 185 905 180 847 126 29 70 741 23...

Calculus
1.2K views

Find the volume V of the described solid S a frustum of a pyramid the...

Calculus
1.2K views

2 6x 3 Find the constant term in the expansion of 6x

Accounting
1.2K views

if you zoom in everything is very clear The following three Independent sets of...

Accounting
1.2K views

Standards are more widely used for nonmanufacturing activities than for manufacturing activities. True False

Accounting
1.2K views

moreh insubonary, lood ete You chatge $57800 Der reenith trom every shidert now I kow...

Accounting
1.2K views

Estimating Inventory: Give an example of a scenario where a company would need to estimate...

Accounting
1.2K views

Differentiate between offsetting and prudence concepts with the help of relevant examples. (1.5+1.5= 3 marks)

Accounting
1.2K views

The production budget cannot be prepared until the direct materfals and direct labor budgets are...