Question: help with all parts 27. (a) You purchase a call option on pounds for a premium of $0.03 per unit, with an exercise price of
27. (a) You purchase a call option on pounds for a premium of $0.03 per unit, with an exercise price of $1.64; the option will not be exercised until the expiration date, all. If the spot rate on the expiration date is $1.65. find your net profit per unit (pound) (b) The existing spot rate of the Canadian dollar is $0.82. The premium on the Canadian dollar put option is $0.04. The exercise price is $0.81. The option will be exercised on the expiration date if at all. If the spot rate on the expiration date is $0.87, calculate (i) the profit and (ii) effective sale price of the Canadian dollar at expiration (c) Mike Suerth sold a call option on Canadian dollars for $.01 per unit. The strike price was $.76, and the spot rate at the time the option was exercised was $.82. Assume Mike did not obtain Canadian dollars until the option was exercised. Also assume that there are 50,000 units in a Canadian dollar option. What was Mike's net profit on the call option
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