Question: USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM Option Type Currency Canadian dollar Contract Size 50,000 Canadian dollars Expiry April Strike Call Put $0.815 $0.0118

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM

Option Type Currency Canadian dollar
Contract Size 50,000 Canadian dollars
Expiry April
Strike Call Put
$0.815 $0.0118
$0.820 $0.0068

If the spot rate at expiration is $0.80 and the call option was purchased, what is the dollar gain or loss?

a. $0
b. $590 loss
c. $312 gain
d. $237 gain
e. $123 gain

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