An investor bought a call option on Mexican pesos for $0.0005per unit. The option has a strike
Fantastic news! We've Found the answer you've been seeking!
Question:
An investor bought a call option on Mexican pesos for $0.0005per unit. The option has a strike price of $0.05 and covers 100,000pesos. Assume that the option can only be exercised on itsexpiration date.
Part 1
What will be the net profit (or loss) to the investor if theexchange rate is $0.055 per peso on the expiration date (inUSD)?
Related Book For
Fundamentals of Financial Management
ISBN: 978-0324597707
12th edition
Authors: Eugene F. Brigham, Joel F. Houston
Posted Date: