The current spot rate is 1 8 euros the december futures, Ask an Expert

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The current spot rate is $1 = .8 Euros. The December futures rate is $1.3 per euro, a call option to buy euros in December $1.25 costs $.08 and a put option to sell euros for $1.25 costs $.03. Suppose you bought the call option and the exchange rate ends up being $1 = .77 Euros. How much did you lose or make a. Lost $0.08 b. Lost $0.03 c. Made $0.05 d. Made $.09.

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Financial Management, Finance

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