Question
Assume the February call and put option on Swiss francs have the same strike price of 58 ($0.5850/SF), and premium of $0.005/SF. In what price
Assume the February call and put option on Swiss francs have the same strike price of 58 ($0.5850/SF), and premium of $0.005/SF. In what price range the purchase of the CALL option would choose not to exercise the option?
(a) At all spot rates above the strike price of 58.5 | ||
(b) At the strike price of 58.5 | ||
(c) At all spot rates below the strike price of 58.5 | ||
(d) At all spot rates below the 58.9 (strike price of 58.5 plus the premium) | ||
(e) need more information to answer the question |
In what price range the purchase of the call option would make profit?
(a) At the strike price of 58.5
| ||
(b) At the price above 58.5
| ||
(c) At all spot rates below the strike price of 58.5
| ||
(d) At all spot rates above 59 (strike price of 58.5 plus the premium) | ||
(e) None of the above |
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