Question: Do the english version question please. Question 20 (Mandatory) (5 points) Strike price: $1,400 /ounce Expiration date: 2 years from now You buy a European
Question 20 (Mandatory) (5 points) Strike price: $1,400 /ounce Expiration date: 2 years from now You buy a European call option for 2,000 ounces gold. You paid 70 $/ounce to buy this option. If the gold price is 1.600 on the expiration date, will you exercise this option? Why? Assume that there is 29 inflation per year. How much profit will you make? Prix d'exercice: 1400 $ / once Date d'expiration: d'ici 2 ans Vous achetez une option d'achat europenne pour 2 000 onces d'or. Vous avez pay 70 57 once pour acheter cette option. Si le prix de l'or est de 1 600 la date d'expiration, exercerez-vous cette option? Pourquoi? Supposons qu'il y ait une Inflation de 2% par an. Quel profit allez-vous faire? Do Format B IU
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