Assume that a british pound put option has a premium of 03


Question: Assume that a British pound put option has a premium of $.03 per unit, and an exercise price of $1.56. The present spot rate is $1.61. The expected future spot rate on the expiration date is $1.52. The option will be exercised on this date if at all. What is the expected per unit net gain (or loss) resulting from purchasing the put option?

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Finance Basics: Assume that a british pound put option has a premium of 03
Reference No:- TGS02731999

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