What is the highest net profit possible for the speculator

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Reference no: EM131989372

A speculator purchases a put option on Singapore dollars(with a strike price of $0.70) for $0.075 per unit. A Singapore dollar option represents 62,500 units.

At the time of the purchase, the spot rate of the Singapore dollar is $0.71 and continually rises to $0.75 by the expiration date.

What is the highest net profit possible for the speculator based on the information above?

Reference no: EM131989372

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