The Existing Spot Rate of the Canadian Dollar Is

question 88

Multiple Choice

The existing spot rate of the Canadian dollar is $.82. The premium on a Canadian dollar call option is $.04. The exercise price is $.81. The option will be exercised on the expiration date if at all. If the spot rate on the expiration date is $.87, the profit as a percent of the initial investment (the premium paid) is:

• A) 0 percent
• B) 25 percent
• C) 50 percent
• D) 150 percent
• E) None of these are correct.

---

Definitions:

Role Of Information

The importance of data and information in making informed decisions, guiding strategies, and optimizing operations in a business context.

Supply Chain Software

Computer programs designed to manage and optimize the logistics operations and processes within a supply chain, from procurement to delivery.

Real Time

Referring to processes or systems that can instantly respond and update based on inputs at the moment they are received.

Inventory Visibility

The ability of a company to track and understand its inventory levels, location, and status in real-time or near-real-time.