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Calculate the net pay-off on long call

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Reference no: EM132540287

The following information is available:

Call contract size GBP100 000

Put contract size GBP100 000

Price of call AUD0.01

Price of put AUD0.008

Exercise exchange rate of call 2.5000

Exercise exchange rate of put 2.5000

Calculate the net pay-off on long call, long put and the combined position at the following spot exchange rates:

a. 2.520;

b. 2.530;

c. 2.490; and

d. 2.480.

Reference no: EM132540287

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