The Premium on a Pound Put Option Is

question 31

Multiple Choice

The premium on a pound put option is $.04. The spot rate and the exercise price are $1.52. The spot rate at the time of this option expiration is expected to be $1.51. Speculators could profit by:

• A) writing a put option.
• B) buying a put option.
• C) buying a call option
• D) writing a call option AND buying a call option simultaneously.

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Definitions:

Personal Involvement

The degree to which individuals engage with a task or issue based on personal interest, values, or stakes.

Social Loafing

The tendency for individuals to reduce their effort when working in a group compared to when working alone.

Productivity Losses

Refers to the decrease in output or efficiency of a process or system, often due to factors such as poor management, lack of resources, or external disruptions.

Coaction Task

An activity where individuals work simultaneously and independently in the presence of others to complete a task.