Dollar profit from speculating one pound call option

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Reference no: EM131511431

Assume the call premium per british pound on october 25 is 0.0217 per pound, the expiration date is december and the strike price is1.27. you anticipate that the spot rate will increase to 1.40. if your expectation proves correct, what should be your dollar profit from speculating one pound call option (31250 units per contrat)?

Reference no: EM131511431

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