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Assume an American call option on euros is written with a strike price of $0.94/EUR...

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Accounting

  1. Assume an American call option on euros is written with a strike price of $0.94/EUR at a premium of 0.0090 cents per EUR and with an expiration date three months from now. The option is for EUR 100,000. Calculate your profit or loss should you exercise the option before maturity at a time when the euro is traded spot at
    1. $0.94/EUR
    2. $1.00/EUR

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