Question: Number 8 Headin v A V V VIV Heading T Profit: $931,000 - $882,000 = $49,000 8. If the euro is expected to be less

Number 8

Headin v A V V VIV Heading T Profit: $931,000 - $882,000 = $49,000 8. If the euro is expected to be less volatile than the New Zealand dollar, will a call option to convert USD into euros likely have a higher or lower premium than a call option to convert USD into New Zealand dollars (assuming that the expiration date and the total dollar value represented by each option are the same for both options)? 9. Assume that you purchased a call option on Brazilian reals for $0.01 per unit. The strike price was $0.20 and the spot rate at the time the option was exercised was $0.22. Assume there are 100,000 units in a Brazilian real currency option (i.e., each option is for 100,000 Brazilian reals). What is your net profit on this option

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