Hans purchases a put option for $0.005/TL (premium), which gives him the right (but no...
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Hans purchases a put option for $0.005/TL (premium), which gives him the right (but no obligation) to sell currency at $0.145/TL. Assume that the spot rate is $0.148/TL, Should he exercise the option or not? what is his profit (or loss)? O a. Yes, he should exercise the option. The profit = $0.002 OB. Yes, he should exercise the option. The loss = - 50.002 O c. All answers are wrong O d. No, he should not exercise the option. The loss = - $0.005 e No, he should not exercise the option. The loss = - S0.002
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