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Home / Questions / Todayâs spot exchange rate is â11256 Consider the following put option on euro â126 Decemb...

Todayâs spot exchange rate is â11256 Consider the following put option on euro â126 December Euroâ which is selling at 073¢ per â For a trader who has a long position on the put

Today’s spot exchange rate is €1=$1.2563. Consider the following put option on euro, ‘126 December Euro’ which is selling at 0.73¢ per €. For a trader who has a long position on the put option, answer the following questions.

(1) Determine the payoff and profit/loss if today is the expiration date.

(2)Calculate Intrinsic Value and Time Value of option

 

Aug 31 2020 View more View Less

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