A put option is available for Swiss franc with an exercise price of AUD0.7754 and a premium of AUD0.0440. Assume that there are no brokerage fees. The future spot rate at which the _____________ of the option breaks even is AUD____________ . a. both buyer and seller; AUD 0.7314 b. seller; AUD 0.7314 c. buyer; AUD 0.8194 d. both buyer and seller; AUD 0.8194 e. buyer; AUD 0.7314
A put option is available for Swiss franc with an exercise price of AUD0.7754 and a premium of AUD0.0440. Assume that there are no brokerage fees. The future spot rate at which the _____________ of the option breaks even is AUD____________ . a. both buyer and seller; AUD 0.7314 b. seller; AUD 0.7314 c. buyer; AUD 0.8194 d. both buyer and seller; AUD 0.8194 e. buyer; AUD 0.7314
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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A put option is available for Swiss franc with an exercise price of AUD0.7754 and a premium of AUD0.0440. Assume that there are no brokerage fees.
The future spot rate at which the _____________ of the option breaks even is AUD____________ .
a.
both buyer and seller; AUD 0.7314
b.
seller; AUD 0.7314
c.
buyer; AUD 0.8194
d.
both buyer and seller; AUD 0.8194
e.
buyer; AUD 0.7314
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