You Are a Speculator Who Sells a Put Option on Canadian

question 66

Multiple Choice

You are a speculator who sells a put option on Canadian dollars for a premium of £0.03 per unit, with an exercise price of £0.49. The option will not be exercised until the expiration date, if at all. If the spot rate of the Canadian dollar is £0.45 on the expiration date, your net profit per unit is:

• A) -£0.04.
• B) -£0.07.
• C) £0.04.
• D) £0.07.
• E) none of the above.

---

Definitions:

Value Networking

A business analysis practice that involves mapping and analyzing the interactions between an organization's resources, capabilities, and market opportunities to create value.

Customer Insights

Critical information gathered about consumers that helps businesses understand their needs, preferences, and behaviors.

Marketing Mix

A set of controllable, tactical marketing tools—product, price, place, and promotion—that a company uses to produce a desired response from its target market.

Discovering New

The process of identifying previously unrecognized opportunities or insights.