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  3. 4. citigroup sells a call option on euros with str

4. Citigroup sells a call option on euros with strike price of $1.33 (contract size...

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Accounting

4. Citigroup sells a call option on euros with strike price of $1.33 (contract size is 500,000) at a premium of $0.02 per euro. If the spot price of the euro at expiration is $1.35, what is Citigroups profit (loss) on the call option? Graph the sellers profit or loss for the call option described in #4 (identify axis). What is the break-even spot exchange rate?

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