A pound call option with a strike price of 15 per euro is, Ask an Expert

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A pound call option with a strike price of $1.5 per euro is priced (i.e., the option premium) is at $0.04 per euro. The spot price is $1.45 per pound. a) What is the intrinsic value of the option? b) What is the profit or loss for the buyer of the call option assuming that the spot price at maturity is $1.55 per euro? d) What is the profit or loss for the seller of the call option assuming that the spot price at maturity is $1.55 per euro? d) graph the profit and loss for the buyer and seller of the call option. (identify the axis)

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Financial Management, Finance

Category:- Financial Management
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