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Standard size of option contract

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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 £?

-What would be the speculator's profit or loss if the pound depreciates to $1.35 per £?

Reference no: EM132507453

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