Question: Please be available to answer questions in the comments. Thank you. Question 2. Assume the premium for an August call option on British pound with

Please be available to answer questions in the comments. Thank you.

Question 2. Assume the premium for an August call option on British pound with strike price of $1.5/ is $0.40/. All else equal, the premium for a put option on British pound with same strike price and maturity is $0.50/. Calculate the maximum gain, maximum loss and break-even point of call option buyer and put option buyer. Maximum loss Maximum gain Unlimited Call $0.40 Break-even point $1.9=1.5+0.4) S1/ Put $1 $0.50

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