Question
Joshua wrote a call option on GBP for USD 0.022 per unit. The strike price is 1.3875 and the spot rate at the time the
Joshua wrote a call option on GBP for USD 0.022 per unit. The strike price is 1.3875 and the spot rate at the time the option maturity is GBP/USD 1.4225, i.e. the price of 1 for GBP. There are 62,500 units in one GBP option. What was Joshua's net profit/loss on this option?
| a. | Loss of USD 812.50 | |
| b. | Profit of USD 1187.50 | |
| c. | Profit of USD 1312.50 | |
| d. | Loss of USD 2500 |
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Essential Finance Guide
Authors: DK Publishing
1st Edition
078948157X, 978-0789481573
