Question
A put option with a strike of $1.95/ has a premium of $0.0333. What is the option's breakeven price? If the current spot exchange rate
A put option with a strike of $1.95/ has a premium of $0.0333. What is the option's breakeven price? If the current spot exchange rate is $2.0085/ then this option is ________ .
Group of answer choices
A. 1.9167 ; OTM
B. 1.9833 ; OTM
C. 1.9833 ; ITM
D. 1.9167 ; ITM
E. None of the above
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
12th Edition
978-0030243998, 30243998, 324422695, 978-0324422696
