Randy Rudecki purchased a call option on British pounds for $0.07 per unit. The strike price was $1.32 and the spot rate at the time the option was exercised was $1.38. Assume there are 30,500 units in a British pound option. What was Randy's net profit on this option? Use a minus sign to enter loss values, if any, Round your answer to the nearest cent.
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![Randy Rudecki purchased a call option on British pounds for $0.07 per unit. The strike price was $1.32 and the spot rate at the time the option was exercised was
O $1.38. Assume there are 30,500 units in a British pound option. What was Randy's net profit on this option? Use a minus sign to enter loss values, if any, Round your
answer to the nearest cent.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F53bbedac-6be3-4e7e-86f9-c986f9db2c85%2Ffdbcc0cf-a3f9-4f31-9db3-d68ef1c30452%2Fyt5elnc_processed.jpeg&w=3840&q=75)
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- Mike sold a put option on British pounds for $.04 per unit. The exercise price was $1.70, and the spot rate at the time the pound option was exercised was $1.68. Assume there are 50,250 units in a British pound option. What was Mike’s per unit net profit on the option? What was Mike’s total net profit on the option? Calculate the break-even spot rate (at expiration) for Mike.2. Mike sold a put option on British pounds for $.04 per unit. The exercise price was $1.70, and the spot rate at the time the pound option was exercised was $1.68. Assume there are 50,250 units in a British pound option. What was Mike’s per unit net profit on the option? What was Mike’s total net profit on the option? Calculate the break-even spot rate (at expiration) for Mike. Discuss (briefly) the answer. Add necessary graphs to your discussion.The call has a premium of $10 and a strike price of $60. You decide to go on margin, meaning that you put down $8 of your own money and borrow the other $2. On the day of expiration, the underlying asset is worth $75. What is your percentage return on equity for this position?
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- You sold a put contract on EDF stock at an option price of $.25 and an exercise price of $22.50. The option expires today when EDF stock is selling for $21.70 a share. Ignoring transactions costs and taxes, what is your total profit on this investment?You have written a call option on Walmart common stock. The option has an exercise price of $81, and Walmart’s stock currently trades at $79. The option premium is $1.60 per contract. a. How much of the option premium is due to intrinsic value versus time value? b. What is your net profit if Walmart’s stock price decreases to $77 and stays there until the option expires? c. What is your net profit on the option if Walmart’s stock price increases to $87 at expiration of the option and the option holder exercises the option?You purchased a put option on British pounds for RM0.06 per unit. The strike price was RM5.60 and the spot rate at the time the pound option was exercised was RM5.68. Assume there are 47,580 units in a British pound option. What was your net profit on the option?
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