Make a graph the profit schedule of the call options

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Magie hawthorne is a currency speculator. she has noticed recently that the euro has appreciated substantially against the us dollar. the current exchange rate of the euro is $1.15. after reading a variety of articles on the subject she believes that the euro will continue to fluctuate substantially in the months to come. although most forecasters believe that the euro will depreciate against the dollar in the near future maggie thinks that there is also a good possibility of further appreciation. currently a call option on euros in available with an exercise price of $1.17 and a premium of $0.04. a euro put option with an exercise price of $1.17 and a premium of $0.03 is also available.

Problem a) graph the profit schedule of the call and put options in two seperate graphs make sure to include all relevant information in your drawing

Reference no: EM132787681

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