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Business, 07.05.2020 05:15 godchaux15395

The existing spot rate of the Canadian dollar is $0.82. The premium on a Canadian dollar call option is $0.04. The exercise price is $0.81. The option will be exercised on the expiration date if at all. If the spot rate on the expiration date is $0.87, the profit as a percent of the initial investment (the premium paid) is: a. 100 percent b. 150 percent. c. 50 percent d. 25 percent.

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