Question
A European call option is written on 62,500. The strike price is $1.55/, and the option premium is $1,875. 1. The option owner is holding
A European call option is written on 62,500. The strike price is $1.55/, and the option premium is $1,875.
1. The option owner is holding a _______________ position.
2. What is the option premium per pound?
3. From the perspective of the writer of the option, he would be happy if the price of the pound __________relative to USD in order not to lose money.
4. What is the breakeven price of this call option?
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Gapenskis Cases In Healthcare Finance
Authors: George H. Pink
6th Edition
1567939651, 978-1567939651
