Randy Rudecki purchased a call option on British pounds for $0.07 per unit. The strike price was $1.45 and the spot rate at the time the option was exercised was $1.46. Assume there are 30,600 units in a British pound option. What was Randy's net profit on this option?

Xinhong company is considering replacing one of its manufacturing machines. the machine has a book value of $39,000 and a remaining useful life of 5 years, at which time its salvage value will be zero. it has a current market value of $49,000. variable manufacturing costs are $33,300 per year for this machine. information on two alternative replacement machines follows. alternative a alternative b cost $ 115,000 $ 117,000 variable manufacturing costs per year 22,900 10,100 1. calculate the total change in net income if alternative a and b is adopted. 2. should xinhong keep or replace its manufacturing machine