Question
Suppose you bought a December British pound call option with an exercise price of $1.3000/. The option price was $0.02/. How much is your profit
Suppose you bought a December British pound call option with an exercise price of $1.3000/. The option price was $0.02/. How much is your profit if the spot price is $1.2800/ at expiration?
$0
$0.02
-$0.04
$0.04
-$0.02
2. A call option is out-of-the-money if the spot exchange rate is greater than the exercise price.
True
False
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International Finance Transactions Policy And Regulation
Authors: Hal Scott, Anna Gelpern
23rd Edition
1647084105, 978-1647084103
