Question: Please answer the next question based on the following quotes on currency options contracts for Swiss francs iCHF, where each caritrict thas 62.500CHFs. Exercise prices,
Please answer the next question based on the following quotes on currency options contracts for Swiss francs iCHF, where each caritrict thas 62.500CHFs. Exercise prices, call and put premiums are in cents You buy one October CALL ontions contract with an exercise price of $0.77. If at the time of the option expiration date, the spot price for Swiss francs is $0.765, then this call option is . and you incur a net out-of-the-money: loss of $312.50 out-of-the-moncy: loss of $1.737.50 in-the-meney; profit of $2.050.00 in-the-money: profit of $312.50
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