What is the net profit or loss per unit to the speculator

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Reference no: EM13936205

A put option on Australian dollars with a strike price of £0.53 is purchased by a speculator for a premium of £0.02. If the Australian dollar's spot rate is £0.50 on the expiration date, should the speculator execise the option on this date or let the option expire? What is the net profit or loss per unit to the speculator? What is the net profit or loss per unit to the seller of this put option?

Reference no: EM13936205

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