A Long Put on Pound Sterling with a Striking Price

question 33

Multiple Choice

A long put on pound sterling with a striking price of K^$/£ = $1.25/£ is ______.

• A) an option to buy pound sterling with dollars
• B) equivalent to a long call on dollars with a striking price of K^£/$ = £0.80/$
• C) equivalent to a short call on dollars with a striking price of K^£/$ = £0.80/$
• D) unlikely to have a positive market value
• E) None of the above

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Definitions:

Reproduction

The biological process by which new individual organisms are produced from their parents.

Growth

The process of increasing in size, a vital process of living organisms and cells.

Positive-Feedback Mechanisms

Biological processes in which a change leads to an even greater change in the same direction, often leading to a rapid completion of the process.

Superior

In anatomical terms, superior refers to a part of the body that is above or positioned higher relative to another part.