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You believe that the US Dollar (USD) will weaken relative to the Australian Dollar (AUD) and intend to speculate on this using an option contract.

You believe that the US Dollar (USD) will weaken relative to the Australian Dollar (AUD) and intend to speculate on this using an option contract. The option is written on AUD 1,000 with a strike price of AUD 1.00 = USD 0.72 (that is, USD 1.00 = AUD 1.39). Which position would you enter to profit from a weakening USD?

Select one:

Long call on AUD.

Long put on AUD.

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