Assume that on October 5, 1999, the exchange rate of Deutschmark to the US dollar is....

匿名用户 最后更新于 2021-07-15 18:05 商科Business

Assume that on October 5, 1999, the exchange rate of Deutschmark to the US dollar is Deutschmark 100 = US $58.88. A believes that the exchange rate of DM against US dollar will rise, so he buys a DM 125,000 call option with an agreed price of DM 100 = US $59.00 expiring in December 1999 from B at an option fee of US $0.04 per DM. Try to analyze the profit and loss distribution of Party A and Party B under different prices.

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