Future spot price will the speculator break even

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A speculator is considering the purchase of two British pound put options, with three-months maturity and with a strike price of $1.42 per £. The premium is $0.03 per pound. The standard size of each option contract is 10,000 pounds.

- At which future spot price will the speculator break even?

- What would be the speculator's profit or loss if the pound appreciates to $1.50 per £?

Reference no: EM132507473

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