Agnes is a speculator in investing in options. Agnes had purchased a put option on Australian...

 

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Agnes is a speculator in investing in options. Agnes had purchased a put option on Australian dollar with a strike price of $0.80. the premium is $0.02. on the expiration date, the Australian dollar spot rate is $0.74. Should Agnes exercise the option on this date or just let the option expire? ii. Calculate Agnes's net profit per unit iii. Calculate the net profit per unit to the seller of this put option Agnes is a speculator in investing in options. Agnes had purchased a put option on Australian dollar with a strike price of $0.80. the premium is $0.02. on the expiration date, the Australian dollar spot rate is $0.74. Should Agnes exercise the option on this date or just let the option expire? ii. Calculate Agnes's net profit per unit iii. Calculate the net profit per unit to the seller of this put option

Answer rating: 100% (QA)

i Agnes should exercise the option on this date because the sp... View the full answer