Question: please help. show all work! will thumbs up CONTRACT SIZE : 31,250/Ct 4. You have $300,000 (plus or minus any dollar amount necessary to round
4. You have $300,000 (plus or minus any dollar amount necessary to round your purchase to the nearest whole number of contracts if need be) that you would like to use to invest in put options on the British pound. You find a three-month pound put option with a premium of $0.0620/ and an exercise price of $1.3858/. a. How much would you pay in premium for each contract? b. How many contracts will you be able to buy with the money available to you, including the plus or minus amount? you c. How much money would have left over or would you request to be added to the $300,000 to round the purchase to the nearest whole number of contracts? d. If at expiration time the British pound spot rate is $1.4160/, would you exercise? Why? e. How much would your total payoff be
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