You Purchase a Call Option on Dollars for a Premium

question 82

Multiple Choice

You purchase a call option on dollars for a premium of £0.02 per unit, with an exercise price of £0.57; the option will not be exercised until the expiration date, if at all. If the spot rate on the expiration date is £0.58, your net profit per unit is:

• A) £0.00.
• B) -£0.02.
• C) -£0.01.
• D) £0.02.
• E) none of the above

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Definitions:

Isometric Exercises

Workouts where muscles contract without changing length, effectively increasing strength without movement.

Range-of-Motion Exercises

Physical activities designed to move joints through their full span of motion to improve or maintain flexibility and muscle strength.

Foot Drop

A gait abnormality where the forefoot drops due to weakness, irritation or damage to the peroneal nerve, or paralysis of the muscles in the anterior portion of the lower leg.

High-Top Tennis Shoes

Athletic shoes that extend significantly above the ankle, offering extra support, commonly used in sports and as casual wear.