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Brian net profit on the put option

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Reference no: EM132646768

Brian May sold a put option on AUD for the premium at USD .04 per unit. The strike price was USD .85 (the exchange rate we use is AUDUSD), and the spot rate at the time the option was exercised was USD .82. Assume Brian immediately sold off the AUD received when the option was exercised. Also, assume that there are 50,000 units in an AUD option. What was Brian's net profit on the put option?

Reference no: EM132646768

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