A speculator thinks that the British pound will be at around $1.32/ (spot rate) by June 25.

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A speculator thinks that the British pound will be at around $1.32/ (spot rate) by June 25. She notices that the put premium per British pound is $0.04 on January 1 (today), with a strike price of $1.40 and a settlement date of June 25.

If her expectations are correct, what would be her dollar net profit or loss from taking a long position on two put options of size 31,250 each?

Related Book For answer-question

Multinational Business Finance

ISBN: 978-0133879872

14th edition

Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett

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Posted Date: Mar 21, 2024 02:16 AM

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A speculator thinks that the British pound will be at around $1.32/ (spot rate) by June 25.

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Multinational Business Finance

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