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Please answer the next question based on the following quotes on currency options contracts for Swiss francs (CHF), where each contract has 62.500 CHFs. Exercise prices, call and put premiums are in cents. 62,500 Swiss Francs-European 77 Oct 77 78 78 79 79 79 80 Dec Nov Dec Oct Nov Dec Nov 81 80 Dec 81 Oct Nov 81 Dec 82 Nov 83 Nov 83 Dec Calls Puts Vol. Last Vol. Last Style. O out-of-the-money: loss of $312.50 O out-of-the-money: loss of $1,737.50 O in-the-money: profit of $2,050.00 in-the-money: profit of $312.50 10 31 *** 14 ... 5 S 5 21 645 10 47 2.78 3.60 www 2.66 1.59 2.04 1.00 1.39 0,59 0.99 0.33 0.20 0.40 www PEL 100 50 www 99 10 10 ... 15 0.23 0.43 0.27 *** *** www 1.41 1.55 3.12 ... You buy one October CALL options contract with an exercise price of $0.77. If at the time of the option expiration date, the spot price for Swiss francs is $0.765, then this call option is and you incur a net.

Please answer the next question based on the following quotes on currency options contracts for Swiss francs (CHF), where each contract has 62.500 CHFs. Exercise prices, call and put premiums are in cents. 62,500 Swiss Francs-European 77 Oct 77 78 78 79 79 79 80 Dec Nov Dec Oct Nov Dec Nov 81 80 Dec 81 Oct Nov 81 Dec 82 Nov 83 Nov 83 Dec Calls Puts Vol. Last Vol. Last Style. O out-of-the-money: loss of $312.50 O out-of-the-money: loss of $1,737.50 O in-the-money: profit of $2,050.00 in-the-money: profit of $312.50 10 31 *** 14 ... 5 S 5 21 645 10 47 2.78 3.60 www 2.66 1.59 2.04 1.00 1.39 0,59 0.99 0.33 0.20 0.40 www PEL 100 50 www 99 10 10 ... 15 0.23 0.43 0.27 *** *** www 1.41 1.55 3.12 ... You buy one October CALL options contract with an exercise price of $0.77. If at the time of the option expiration date, the spot price for Swiss francs is $0.765, then this call option is and you incur a net.

Essentials Of Investments
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
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Please answer the next question based on the following quotes on currency options contracts for Swiss francs (CHF), where each contract has 62.500 CHFs. Exercise prices, call and put premiums are in cents. 62,500 Swiss Francs-European Oct 77 77 Dec 78 Nov 78 Dec 79 79 Oct Nov 79 Dec 80 Nov 80 Dec 81 Oct 81 Nov 81 Dec 82 Nov Nov Dec 83 83 Calls Puts Vol. Last Vol. Last Style. O out-of-the-money; loss of $312.50 O out-of-the-money; loss of $1,737.50 O in-the-money: profit of $2,050.00 Oin-the-money: profit of $312.50 10 2.78 31 3.60 14 2.66 ata: uuu! 1.59 2.04 5 1.00 1.39 21 10 0,59 0.99 0.33 47 0.20 6 0.40 PED 47 100 50 10 *** 0.23 0.43 0.27 1.41 1.55 15 3.12 You buy one October CALL options contract with an exercise price of $0.77. If at the time of the option expiration date, the spot price for Swiss francs is $0.765, then this call option is and you incur a net
Transcribed Image Text:Please answer the next question based on the following quotes on currency options contracts for Swiss francs (CHF), where each contract has 62.500 CHFs. Exercise prices, call and put premiums are in cents. 62,500 Swiss Francs-European Oct 77 77 Dec 78 Nov 78 Dec 79 79 Oct Nov 79 Dec 80 Nov 80 Dec 81 Oct 81 Nov 81 Dec 82 Nov Nov Dec 83 83 Calls Puts Vol. Last Vol. Last Style. O out-of-the-money; loss of $312.50 O out-of-the-money; loss of $1,737.50 O in-the-money: profit of $2,050.00 Oin-the-money: profit of $312.50 10 2.78 31 3.60 14 2.66 ata: uuu! 1.59 2.04 5 1.00 1.39 21 10 0,59 0.99 0.33 47 0.20 6 0.40 PED 47 100 50 10 *** 0.23 0.43 0.27 1.41 1.55 15 3.12 You buy one October CALL options contract with an exercise price of $0.77. If at the time of the option expiration date, the spot price for Swiss francs is $0.765, then this call option is and you incur a net
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