Xyz sold a call option on canadian dollars for 01 per unit, Ask an Expert

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XYZ sold a call option on Canadian dollars for $.01 per unit. The strike price was $.76, and the spot rate at the time the option was exercised was $.82. Assume XYZ did not obtain Canadian dollars until the option was exercised. Also assume that there are 50,000 units in a Canadian dollar option. What was XYZ’s net profit on the call option?

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Financial Management, Finance

Category:- Financial Management
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