Speculating with Currency Options The spot rate of the New Zealand dollar is $0.77. A call option on New Zealand dollars with a one-year expiration date has an exercise price of $0.78 and a premium of $0.04. A put option on New Zealand dollars at the money with a one-year expiration date has a premium of $0.03. You expect that the New Zealand dollar’s spot rate will decline over time and will be $0.71 in one year.
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