A Call Option on Euros Is Written with a Strike

question 67

Multiple Choice

A call option on euros is written with a strike price of $1.30/euro. Which spot price maximizes your profit if you choose to exercise the option before maturity?

• A) $1.20/euro
• B) $1.25/euro
• C) $1.30/euro
• D) $1.35/euro

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Definitions:

Steep Mountain Front

The abrupt transition from a mountain's slope to the relatively flat terrain, typically indicating tectonic activity or erosion processes.

Deepest Marine Water

The section of the ocean that is furthermost below sea level, often located in ocean trenches.

River System

A network of rivers and streams that drain an area of land, including tributaries, main rivers, and often a delta where it meets an ocean or lake.

Deepest Marine Water

The water found at the greatest depths of the ocean, often characterized by cold temperatures and high pressure.