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Assume two call options on Australian Dollars are currently available. The first option has a...

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Finance

  1. Assume two call options on Australian Dollars are currently available. The first option has a strike price of $.635 and a premium of $.0195. The second option has a strike price of $.645 and a premium of $.0185. To construct a bear spread, a trader buys the $.645 option and sells the $.635 option. What is the profit of the trader contingent on the spot rate of Australian dollar at option expiration?

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