If you sell these options today on 10000 sgd and at


A call option on the SGD with a strike price of 0.73 USD/SGD and a maturity of 6 months has a premium bid price of 0.07 USD, and a 1penny bid-ask spread. If you sell these options today on 10,000 SGD, and at maturity the SGD is quoted at bid price of 0.89 USD/SGD, with a 1 penny bid-ask spread, what is your net profit on this position?

Note: pay careful attention to which side of the quote you will be trading with at each step.

Request for Solution File

Ask an Expert for Answer!!
Financial Management: If you sell these options today on 10000 sgd and at
Reference No:- TGS02808755

Expected delivery within 24 Hours