Citigroup sells a call option on euros contract size is


Citigroup sells a call option on euros (contract size is €500,000) at a premium of $0.04 per euro. If the exercise price is $1.34 and the spot price of the euro at expiration is $1.36, what is Citigroup’s profit (loss) on the call option?

$20,000 loss

$10,000 gain

$30,000 gain

$40,000 loss

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Financial Management: Citigroup sells a call option on euros contract size is
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