Petra is an option writer of Australian dollar (A$) options. In anticipation of an appreciation of the Australian dollar from its current level of $0.62 to $0.65, she has written a put option of A$150,00O with an exercise price of $0.635 and a premium of $0.015. If the spot rate at the option's maturity tums out to be $0.59, what is Petra's total profit or loss (assuming the buyer of the option acts rationally)? O $4,500 O s0 O $4,500 O -$2,250
Petra is an option writer of Australian dollar (A$) options. In anticipation of an appreciation of the Australian dollar from its current level of $0.62 to $0.65, she has written a put option of A$150,00O with an exercise price of $0.635 and a premium of $0.015. If the spot rate at the option's maturity tums out to be $0.59, what is Petra's total profit or loss (assuming the buyer of the option acts rationally)? O $4,500 O s0 O $4,500 O -$2,250
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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