QUESTION 4
Spot rate is $1.68. Net profit or loss per unit is:
1.00000 points
QUESTION 5
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This question and the following three questions use thisinformation. One year ago, you sold a put option on 100,000 euroswith an expiration date of one year. You received a premium on theput option of $.04 per unit. The exercise price was $1.22. Assumethat one year ago, the spot rate of the euro was $1.20, theone-year forward rate exhibited a discount of 2%, and the one-yearfutures price was the same as the one-year forward rate. From oneyear ago to today, the euro depreciated against the dollar by 4percent. Today the put option will be exercised (if it is feasiblefor the buyer to do so).
The spot rate on the euro depreciated by 4%. What is the spotrate for the euro after it depreciates? Don't use units (e.g.,don't use a dollar sign).
1.00000 points
QUESTION 6
What was the total loss on the put option? Again, don't use adollar sign, and remember this is the total loss on all shares
QUESTION 4
Spot rate is $1.68. Net profit or loss per unit is:
1.00000 points
QUESTION 5
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This question and the following three questions use thisinformation. One year ago, you sold a put option on 100,000 euroswith an expiration date of one year. You received a premium on theput option of $.04 per unit. The exercise price was $1.22. Assumethat one year ago, the spot rate of the euro was $1.20, theone-year forward rate exhibited a discount of 2%, and the one-yearfutures price was the same as the one-year forward rate. From oneyear ago to today, the euro depreciated against the dollar by 4percent. Today the put option will be exercised (if it is feasiblefor the buyer to do so).
The spot rate on the euro depreciated by 4%. What is the spotrate for the euro after it depreciates? Don't use units (e.g.,don't use a dollar sign).
1.00000 points
QUESTION 6
What was the total loss on the put option? Again, don't use adollar sign, and remember this is the total loss on all shares
