Aume you sell a european call option on aud100000 aud


Assume you sell a European call option on AUD100,000 (AUD = Australian Dollar). The strike price is X(USD/AUD)=0.72 (USD = U.S. Dollar), the maturity is one year, and the premium is 5 cents per AUD. Find the maximum loss and the break-even point S(USD/AUD). Use 4 decimals for the exchange rates and 2 decimals for currency amounts.

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Financial Management: Aume you sell a european call option on aud100000 aud
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