Assume brian immediately sold off the canadian dollars, Financial Management

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Assume brian immediately sold off the canadian dollars

Selling currency put options. Brian Tull sold a put option on Canadian dollars for £0.02 per unit. The strike price was £0.42, and the spot rate at the time the option was exercised was £0.40. Assume Brian immediately sold off the Canadian dollars received when the option was exercised. Also assume that there are 50 000 units in a Canadian dollar option. What was Brian's net profit on the put option?

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Financial Management: Assume brian immediately sold off the canadian dollars

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