Assume that Mr.Binda is aspeculator who buys a 90 day
British pound call option with a strike price of 27.02$.Assume one option
contract specifies 10,000 units and the current spot price as of that date is
26.87$.mr.binda pays a premium of 0.05$ per unit for the call option and no
other charge (such as brokerage fee).Just on expiration date,the spot rate of a
pound reaches 27.18$.
a.
Determine the profit or loss if the option is
exercis ...
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01 Nov 2020
Expiry Date: 01 Nov 2020
