Question: Consider a call option contract. The option is a three-month American call option with a strike price of $1.250 = 1.00 and an option premium
Consider a call option contract. The option is a three-month American call option with a strike price of $1.250 = 1.00 and an option premium of $3,125. A call option contract specifies 62,500. (1) What is the call premium per unit (i.e., per pound)? (2) What is the break-even exchange rate? O (1) $.025 per unit, (2) $1.225 per unit O (1) $.025 per unit, (2) $1.275 per unit O (1) $.050 per unit, (2) $1.200 per unit O (1) $.050 per unit, (2) $1.300 per unit
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