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Question: Bulldog, Inc., has sold Australian dollar call options at a premium of $.02 per unit, and an exercise price of $.89 per unit. It has forecasted the Australian dollar's rate over the period of concern as $.86, $.87, $.88, $.89, $.91 and $.92. Determine the net profit (or loss) per unit to Bulldog, Inc., if Australia dollar each level occurs (show detailed analysis; follow the five steps in the teaching notes).

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M92788813

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