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26-06-2024
Business

Answered

The call premium per Canadian dollar on April 19 is US$0.04/Can$, the expiration date is September 19, and the price is US$0.80/Can$. Mr. Ken purchased three call options for Canadian dollars (Can$.150,000) on April 19. He decides to let his options expire unexercised on September 19 because the spot rate for the Canadian dollar fell to US$0.70/Can$, on that day.

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