Consider a "SFr Dec 7000 Call" Selling on the Chicago

question 61

Multiple Choice

Consider a "SFr Dec 7000 call" selling on the Chicago Mercantile Exchange (CME) at a price of $0.0180/SFr. Each CME Swiss franc contract is worth SFr125,000. What would be the profit on an investment in this option if the spot rate at expiration is $0.7320/SFr?

• A) -$2,250
• B) $0
• C) $1,750
• D) $2,250
• E) $4,000

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