You buy 6 call options with a contract size of AUD 30,000. They have a USD/AUD st premium of 7.86 (USD/AUD). You hold these options for 1 month and then sell ther The brokerage fee on each contract is payable on both entry and exit and is USD 12 profit on this transaction in USD? Oa. -190,946.52

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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You buy 6 call options with a contract size of AUD 30,000. They have a USD/AUD strike price of 0.57 and a
premium of 7.86 (USD/AUD). You hold these options for 1 month and then sell them for 6.8 (USD/AUD).
The brokerage fee on each contract is payable on both entry and exit and is USD 12.21. What is the net
profit on this transaction in USD?
O a. -190,946.52
b. -31,824.42
c.-190,800.00
Od. -190,873.26
Oe, 55,800.00
Transcribed Image Text:You buy 6 call options with a contract size of AUD 30,000. They have a USD/AUD strike price of 0.57 and a premium of 7.86 (USD/AUD). You hold these options for 1 month and then sell them for 6.8 (USD/AUD). The brokerage fee on each contract is payable on both entry and exit and is USD 12.21. What is the net profit on this transaction in USD? O a. -190,946.52 b. -31,824.42 c.-190,800.00 Od. -190,873.26 Oe, 55,800.00
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