Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. i have some euros in my bank account (currently: e

I have some euros in my bank account (Currently: euro = $1.50). I also bought a...

80.2K

Verified Solution

Question

Finance

I have some euros in my bank account (Currently: euro = $1.50).I also bought a put option on euro (X=$1.50, Premium=$0.02). a.Draw the combined graph. b. What is the name of this strategy? Whatis the objective with this strategy? c. How many break even pointsare there? What is (are) the break even point(s)? d. IfST=$1.35/euro just before expiration, what is my profit? e. IfST=$1.60/euro just before expiration, what is my profit?

Answer & Explanation Solved by verified expert
4.1 Ratings (733 Votes)
pay off from Put Option MAX strike price stock price 0 premium per share MAX 150 stock price 0 002Pay off from Asset holding Stock price    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

I have some euros in my bank account (Currently: euro = $1.50).I also bought a put option on euro (X=$1.50, Premium=$0.02). a.Draw the combined graph. b. What is the name of this strategy? Whatis the objective with this strategy? c. How many break even pointsare there? What is (are) the break even point(s)? d. IfST=$1.35/euro just before expiration, what is my profit? e. IfST=$1.60/euro just before expiration, what is my profit?

Other questions asked by students

Q

Minden Company introduced a new product last year for which it is trying to find an...

Accounting
Q

9. In 2001, a total of 15,555 homicide deaths occurred among males and 4,753 homicide deaths...

Statistics
Q

In zebrafish, three genes have been mapped on the third chromosome, in the order fiz---6 m.u.---myob-------14 m.u.-------sufi...

Biology
Q

Octaone produces luxury water cooler. This is their first year in operation (i.e. starting the year...

Accounting
Q

State the coordinates for each of the plotted points Enter your answers in form of...

Geometry
Q

552x 2y 16 x 6y 8 7 A 8 2 B 8 0 C Infinite...

Algebra
Q

4 10 points The profit that the vendor makes per day by selling x pretzels...

Algebra
Q

Exercise 2 JARDIN, a manufacturer of garden furniture, recently received an order from a chain...

Accounting
Q

prepare bank reconciliation as of 31 dec, 2019 R. Bank Rs. Cash...

Accounting
Q

During the year, the City of Penstemon engaged in the following transactions. The city has...

Accounting
Q

Song earns $105,000 taxable income as an interior designer and is taxed at an average...

Accounting
Q

At the beginning of the year, Learer Companys manager estimated total direct labor cost to...

Accounting