There are two problems for this question:1. What is the total dollar amount of your profit and loss:
Put option premium is equal to 0.04 per unit.
The exercise price is 1.22
One option contract is 100,000
Selling price is 1.20
-Purchase prise is - 1.22
-Premium paid is +0.04
Net profit is = 0.02 x 100,000 = 2,000 – 80 = 1,920
2. Now undertake that as an alternative of taking a position in the put option one year ago, you sold a future's contract on 100,000 euros with a payment date of one year.
Find the total dollar amount of your profit or loss.
Solution: Contract to buy: $1.20 x 100,000 = 120,000 at payment date.
Contract to sell: $1.22 x 100,000 = 122,000 at settlement date
Settle contracts: -2,000 - 80 = -$2,080
Answer:
A atom is a small unit to which matter can be divided without releasing electrically charged particles
Explanation:
