Question
Emma sold a call option on Singapore dollars for A$0.01 per unit. The exercise price was A$0.85, and the spot rate at the maturity was
Emma sold a call option on Singapore dollars for A$0.01 per unit. The exercise price was A$0.85, and the spot rate at the maturity was A$0.90. Assume Emma did not obtain Singapore dollars until the option was exercised. Also assume that there are 60,000 units in a Singapore dollar option. What was Emmas net profit on the call option?
| A. | A$ -2400 | |
| B. | A$ 2400 | |
| C. | A$ 3000 | |
| D. | A$ -3000 | |
| E. | A$ -6000 |
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Health Care Finance Economics And Policy For Nurses
Authors: Betty Rambur
2nd Edition
0826152538, 978-0826152534
