Consider a "SFr Dec 7000 put" selling on the Chicago Mercantile Exchange (CME) at a price of $0.0120/SFr. Each CME C$ contract is worth SFr125,000. What would be the profit on an investment in this option if the spot rate at expiration is $0.7120/SFr?
A) -$1,500
B) $0
C) $1,500
D) $3,000
E) None of the above
Correct Answer:
Verified
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