Question - to put it into practice ii a call option on, Ask an Expert

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Question - To put it into practice II A call option on Canadian dollars with a strike price of $.60 is purchased by a speculator for a premium of $.06 per unit. Assume each option calls for the delivery of 50,000 CAD. If the Canadian dollar's spot rate is $.65 at the time the option is exercised, what is the net profit to the 33 option is exercised, what is the net profit to the speculator? What would the spot rate need to be at the time the option is exercised for the speculator to break even? What is the net profit to the seller of this option?

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Basic Finance, Finance

Category:- Basic Finance
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