What was marks net profit on the put option


Question: Mark Jones sold a put option on Canadian dollars for $.03 per unit. The strike price was $.75, and the spot rate at the time the option was exercised was $.72. Assume Mark immediately sold off the Canadian dollars received when the option was exercised. Also assume that there are 50,000 units in a Canadian dollar option. What was Mark's net profit on the put option?

Solution Preview :

Prepared by a verified Expert
Finance Basics: What was marks net profit on the put option
Reference No:- TGS02061379

Now Priced at $20 (50% Discount)

Recommended (97%)

Rated (4.9/5)