Subject: International Finance Management Question 2. (4+3 points) Abdul sold a call option on British...
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Finance
Subject: International Finance Management
Question 2. (4+3 points)
Abdul sold a call option on British pounds for $.05 per unit. The exercise price was $1.80, and the spot rate at the time the pound option was exercised was $1.92. Assume there are 31,250 units in a British pound option contract. What was Abdul's per unit net profit on the option contract? What was Abdul's total net profit on the option contract? Calculate the break-even spot rate (at expiration) for Abdul. (Draw Graph)
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