Assume Henrik buys a call option on euros with a strike price of
?$1.2500?/€
at a premium of
3.80¢
per euro
?($0.0380?/€?)
and with an expiration date three months from now. The option is for
€100,000.
Calculate? Henrik’s profit or loss should he exercise before maturity at a time when the euro is traded spot at strike prices beginning at
?$1.11?/€?,
rising to
?$1.29?/€
in increments of
?$0.03.
The profit or loss should Henrik exercise before maturity at a time when the euro is traded spot at
?$1.11?/€
is
?$enter your response here.
?(Round to the nearest cent and indicate a loss by using a negative? sign.)The profit or loss should Henrik exercise before maturity at a time when the euro is traded spot at
?$1.14?/€
is
?$enter your response here.
?(Round to the nearest cent and indicate a loss by using a negative? sign.)The profit or loss should Henrik exercise before maturity at a time when the euro is traded spot at
?$1.17?/€
is
?$enter your response here.
?(Round to the nearest cent and indicate a loss by using a negative? sign.)The profit or loss should Henrik exercise before maturity at a time when the euro is traded spot at
?$1.20?/€
is
?$enter your response here.
?(Round to the nearest cent and indicate a loss by using a negative? sign.)The profit or loss should Henrik exercise before maturity at a time when the euro is traded spot at
?$1.23?/€
is
?$enter your response here.
?(Round to the nearest cent and indicate a loss by using a negative? sign.)The profit or loss should Henrik exercise before maturity at a time when the euro is traded spot at
?$1.26?/€
is
?$enter your response here.
?(Round to the nearest cent and indicate a loss by using a negative? sign.)The profit or loss should Henrik exercise before maturity at a time when the euro is traded spot at
?$1.29?/€
is
?$enter your response here.
?(Round to the nearest cent and indicate a loss by using a negative? sign.)
