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You purchase a put option on pounds for a premium of $0.05 p…
You purchase a put option on pounds for a premium of $0.05 per unit, with an exercise price of $1.74; the option will not be exercised until the expiration date, if at all. If the spot rate on the expiration date is $1.66, your net profit per unit is:
You purchase a put option on pounds for a premium of $0.05 p…