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Compute the total net profit-loss and the rate of return

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Reference no: EM131814102

ABC corp. bought SF currency put futures option for December 2017, for a strike price of$0.9500 per SF. They paid a premium of 3 cents per unit. At the time when ABC Corporation exercised the put, the spot price was $ 0.9015 per SF. There are 125,000 units in a SF currency futures option. Please a) calculate the break-even point for this option. b)compute the total net profit/loss and the rate of return.

Reference no: EM131814102

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