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Business, 05.07.2019 06:10 smithsa10630

Assume that a speculator purchases a put option on british pounds (with a strike price of $1.50) for $.05 per unit. a pound option represents 31,250 units. assume that at the time of the purchase, the spot rate of the pound is $1.51 and continually rises to $1.62 by the expiration date. the highest net profit possible on the option for the speculator based on the information above is: a.$1,562 b. -$1,562 c. -$1,250 d. -$1,250 e. none of the above

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Assume that a speculator purchases a put option on british pounds (with a strike price of $1.50) for...
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