Question
The spot exchange rate for the British Pound is USD1.3107/GBP. A December GBP put option with a strike price of $1.2950 is selling at a
The spot exchange rate for the British Pound is USD1.3107/GBP. A December GBP put option with a strike price of $1.2950 is selling at a premium of $0.0209 per GBP. What is the time value of the option?
| A. | $0.0000 | |
| B. | $0.0052 | |
| C. | $0.0281 | |
| D. | $0.0157 |
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Introduction to Finance Markets Investments and Financial Management
Authors: Melicher Ronald, Norton Edgar
15th edition
9781118800720, 1118492676, 1118800729, 978-1118492673
