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What is carl payoff

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Problem 1: Carl is an option writer. In anticipation of a depreciation of the British pounds from its current level of $1.50 to $1.45, he has written a call option with an exercise price of $1.58 and a premium of $0.03. If the spot rate at the option's maturity turns out to be $1.5, what is Carl's payoff (assuming the buyer of the option acts rationally)? (round up to 2 decimal place, e.g. 0.06)

Reference no: EM132768454

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