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Business, 09.04.2020 23:50 Knownothing

Assume that a speculator purchases a put option on British pounds (with a strike price of $1.50) for $.05 per unit. A pound option represents 31,250 units. Assume that at the time of the purchase, the spot rate of the pound is 1.51USD/GBP and settles at 1.42USD/GBP by the expiration date. The highest net profit possible for the speculator based on the information above is .

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Assume that a speculator purchases a put option on British pounds (with a strike price of $1.50) for...
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