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1.S – X = $0.82 –

$0.76 = $0.06 ≥ 0

Net profit per C$ = Selling price of currency – Buying price of currency + Premium on the option
= $0.76 – $0.82 + $0.01 = -$0.05

Net profit per option = 50,000 units × (-$.05) = -$2,500

3. S – X = $1.59 – $1.80 = – $0.21 ≤ 0

Net profit per ₤ = Selling price of currency – Buying price of currency – Premium on the option
= $1.80 – $1.59 – $0.04 = $0.17

Net profit per option = 31,250 units × ($.17) = $5,312.50

4. Net profit per unit = Selling price of currency – Buying price of currency + Premium on the option.
Otherwise, that is if S – X > 0, the holder of the put option will let the option expire and the seller,
Bulldog, Inc., will walk away with the premium that it had collected at the time of option’s sale.

5.  S – X = $1.46 – $1.45 = $0.01 ≥ 0

Net profit per ₤ = Selling price of currency – Buying price of currency – Premium on the option
= $1.46 – $1.45 – $0.02 = -$0.01

Net profit per option = 31,250 units × (-$.01) = -$312.50

8. Possible Spot Rate Net Profit (Loss) per Unit of Canadian Dollar to Auburn Corporation on Expiration Date if Spot Rate Occurs $.76 $.08 .79 .05 .84 .00 .87 -.02 .89 -.02

第四次作業
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