Question
QUESTION Given the following information on a U.S. exchange: Todays Spot: GBP/USD 1.13 Spot rate (at expiry) 1.08 GBP/USD Monthly Deliverable Put Options. Strike 1.11
QUESTION
Given the following information on a U.S. exchange:
Todays Spot: GBP/USD 1.13
Spot rate (at expiry) 1.08
GBP/USD Monthly Deliverable Put Options. Strike 1.11 Time to expiry: 1 month Contract size 85,000 GBP Option Premium 1.42c US
What is the percentage return to a speculator from purchasing this option and holding it until maturity? [To the nearest percentage]
| a. | None of the other options are correct | |
| b. | -100% | |
| c. | 103% | |
| d. | 3% | |
| e. | 111% |
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Listed Volatility And Variance Derivatives
Authors: Yves Hilpisch
1st Edition
1119167914, 978-1119167914
