The following graph shows the contingency graph for sellers of euro call options, with a premium...
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The following graph shows the contingency graph for sellers of euro call options, with a premium of $0.08 and an exercise price of $1.46. NET PROFIT PER UNIT (Dollars per unit) 0.09 0.08 0.07 0.06 0.05 40 0.04 0.03 0.02 0.01 0 -0.01 + -0.02 -0.03 -0.04 -0.05 -0.06 -0.07 -0.08 -0.09 1.42 1.44 1.46 1.48 1.50 1.52 1.54 1.56 1.58 1.60 FUTURE SPOT RATE (Dollars per euro) According to the graph, if the spot rate turns out to be $1.52, and the option is exercised, the seller will According to the graph, break-even price is per unit. The following graph shows the contingency graph for sellers of euro call options, with a premium of $0.08 and an exercise price of $1.46. NET PROFIT PER UNIT (Dollars per unit) 0.09 0.08 0.07 0.06 0.05 40 0.04 0.03 0.02 0.01 0 -0.01 + -0.02 -0.03 -0.04 -0.05 -0.06 -0.07 -0.08 -0.09 1.42 1.44 1.46 1.48 1.50 1.52 1.54 1.56 1.58 1.60 FUTURE SPOT RATE (Dollars per euro) According to the graph, if the spot rate turns out to be $1.52, and the option is exercised, the seller will According to the graph, break-even price is per unit.
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