Xyz corporation buys uk pound call options with a strike, Ask an Expert

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XYZ Corporation buys UK pound call options with a strike price of $1.55. The call premium is $.002 per currency unit. A financial analyst forecasts the following possible values for spot $/Pound rates at the expiration: $1.2, 1.35, 1.6, 1.75. What is XYZ Corporations break even value? What is it's profit/loss when the expiration spot rate is a) $1.2, b) 1.75? (show work)

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Financial Management, Finance

Category:- Financial Management
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