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You are a speculator who sells a put option on Canadian dollars for a premium of $.03 per unit, with an exercise price of $.62. The option will not be exercised until the expiration date, if at all. If the spot rate of the Canadian dollar is $.65 on the expiration date, your net profit per unit is:

-$0.05

-$0.03

+$0.03

+$0.05

+$0.07

Financial Management, Finance

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