Determine the probability distribution of net gains per unit

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Reference no: EM131231224

Currency Call Options:

Use the following information to determine the probability distribution of net gains per unit from purchasing a call option on British pounds.
¦ Spot rate of the British pound is $1.45.
¦ Premium on the British pound option is $0.04 per unit.
¦ Exercise price of a British pound option is $1.46.
¦ Your expectation of the British pound spot rate prior to the expiration of the option is:

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Reference no: EM131231224

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