Question
2. Assume the six-month European call option has a striking price of $0.95/CHF. Assume the option premium is $0.02/CHF. If at the due date, the
2. Assume the six-month European call option has a striking price of $0.95/CHF. Assume the option premium is $0.02/CHF.
If at the due date, the value of the Swiss Franc has decreased to $0.90/CHF. The option should ______. The net profit/loss of the buyer is _______.
a. be exercised; $0.03/CHF.
b. be exercised; $0.05/CHF
c. not be exercised; $-0.02/CHF
d. not be exercised; $0.03/CHF
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The Economics Of Money Banking And Finance
Authors: Peter Howells, Keith Bain
2nd Edition
0273651080, 978-0273651086
