You Are a Speculator Who Sells a Call Option on Swiss

question 56

Multiple Choice

You are a speculator who sells a call option on Swiss francs for a premium of $.06,with an exercise price of $.64.  The option will not be exercised until the expiration date,if at all.  If the spot rate of the Swiss franc is $.69 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) $.02.0
• B) $.01.
• C) $.01.0
• D) $.02.
• E) none of the above

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Definitions:

Nerve Hearing Impairment

A type of hearing loss resulting from damage to the auditory nerve, affecting the transmission of sound signals to the brain.

Auditory Pathways

The neural pathways that sound travels from the ear through the auditory cortex of the brain.

Cochlea

Snail-shaped structure of the inner ear that is filled with fluid.

Basilar Membrane

A key structure within the cochlea of the inner ear, playing a crucial role in sound vibration analysis and hearing.