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Kate, a speculator, sells a call option on Australian dollars (AUD) for a premium of $0.05 per unit, with an exercise price of $0.70/AUD. The

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Kate, a speculator, sells a call option on Australian dollars (AUD) for a premium of $0.05 per unit, with an exercise price of $0.70/AUD. The option will not be exercised until the expiration date, if at all. If the spot rate of the Australian dollar is $0.73/AUD on the expiration date, Kate's net profit per unit is: O-$0.02. -$0.05. O-$0.03. +$0.02. +$0.05

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