You Are a Speculator Who Sells a Call Option on Swiss

question 45

Multiple Choice

You are a speculator who sells a call option on Swiss francs for a premium of £0.04, with an exercise price of £0.42. The option will not be exercised until the expiration date, if at all. If the spot rate of the Swiss franc is £0.47 on the expiration date, your net profit per unit, assuming that you have to buy Swiss francs in the market to fulfil your obligation, is:

• A) -£0.02.
• B) -£0.01.
• C) £0.01.
• D) £0.02.
• E) none of the above.

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Definitions:

Food Temptations

Situations or stimuli that induce a desire to consume food, often in a way that conflicts with nutritional goals or dietary restrictions.

Sleep Deprived

A condition resulting from not getting enough sleep, which can affect cognitive functions, mood, and overall health.

Cortical Responses

Cortical responses are the brain's reactions to stimuli, involving electrical activity in the cerebral cortex, which plays a key role in processing sensory information, thought, conscious movement, and much more.

Increased Risk

Refers to a situation where there is a higher likelihood of encountering harm or negative outcomes.