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What will his net profit or loss per unit

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Biden expects the British pound (GBP) to appreciate from USD 2.8479 to USD 3.1798 in 3 months. The British pound currency option is available at a cost of USD 0.0539 per pound and the strike price is USD 2.9824. Suppose Biden buys the call options and the spot rate in 3 months is USD 3.23/GBP, what will his net profit or loss per unit be if he acts rationally.

Reference no: EM132634773

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