Assignment on Speculator Profitability
Added on 2020-05-11
6 Pages675 Words139 Views
Running head: FINANCEFinanceName of the Student:Name of the University:Authors Note:
FINANCE1Table of ContentsAbstract:.....................................................................................................................................21. Graphing the call option cash flow schedule:........................................................................22. Detecting the speculator profit if Yen appreciate to $1.00/100 yen:.....................................23. Detecting the speculator profit if Yen appreciate only to the forward rate:...........................34. Determining the future spot price at which the speculators will breakeven:.........................3Conclusion:................................................................................................................................4Reference and Bibliography:......................................................................................................5
FINANCE2E = 960C = -1.35STST = E + CAbstract:The overall assignment mainly depicts the call option of options speculator, where theadequate profitability could be identified in different situations. The relevant cash flowschedule, speculators profit and break even are mainly identified from the followingcalculations.1. Graphing the call option cash flow schedule:2. Detecting the speculator profit if Yen appreciate to $1.00/100 yen:ParticularsValueContract5Value of Contract6,250,000Price100Striking price96premium1.35Profit8281.25
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