Shale corporation purchases brl put options with a strike


Shale Corporation purchases BRL put options with a strike price of USD 0.50. The option premium is USD 0.02 per currency unit. A financial analyst at Shale forecasts the following possible values for spot BRLUSD at maturity. Calculate payoff and profit (per currency unit) for each of these spot values.

Possible Value of CHFUSD

Option Exercise Y/N

Payoff

Profit

0.42




0.47




0.52




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Finance Basics: Shale corporation purchases brl put options with a strike
Reference No:- TGS02209665

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