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Net profit per unit to the seller of put option

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Reference no: EM132466076

A put option on British Pounds with anexerciseprice of $2.00 is purchased by a speculator for a premium of $0.05. If the British Pound's spot rate is $2.10 on the expiration date, should the speculator exercise the option on this date or let the option expire? What is the net profit per unit to the speculator? What is the net profit per unit to the seller of this put option?

Reference no: EM132466076

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