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Consider a investor purchasing a EUR currency call option with the following characteristics:
contract size EUR62,500, exercise price is USD1.50VEUR option premium is USD0.01/EUR
Suppose on maturity the spot rate is USD1.65/EUR. Then the break-even price is and the profit
obtained is when the option is exercised is a. USD1.51/EUR, USD8,750 b. USD1.50/EUR,
USD625 c. USD1.65/EUR, USD0 d. USD1.66/EUR, - USD625 e.

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Consider a investor purchasing a EUR currency call option with the fo.pdf

  • 1. Consider a investor purchasing a EUR currency call option with the following characteristics: contract size EUR62,500, exercise price is USD1.50VEUR option premium is USD0.01/EUR Suppose on maturity the spot rate is USD1.65/EUR. Then the break-even price is and the profit obtained is when the option is exercised is a. USD1.51/EUR, USD8,750 b. USD1.50/EUR, USD625 c. USD1.65/EUR, USD0 d. USD1.66/EUR, - USD625 e.