Question: Bama Corp. has sold British pound call options for speculative purposes. The option premium was $.06 per unit, and the exercise price was $1.58. Bama

Bama Corp. has sold British pound call options for speculative purposes. The option premium was $.06 per unit, and the exercise price was $1.58. Bama will purchase the pounds on the day the options are exercised (if the options are exercised) in order to fulfill its obligation. In the following table, fill in the net profit (or loss) to Bama Corp. if the listed spot rate exists at the time the purchaser of the call options considers exercisingthem.

Possible Spot Rate at the Time Purchaser of Call Options Considers Exercising Them Net Profit (Loss) per Unit to Bama Corp. $1.53 155 1.57 1.60 1.62 1.64 1.68

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