You Purchase a Put Option on Swiss Francs for a Premium

question 48

Multiple Choice

You purchase a put option on Swiss francs for a premium of $.02, with an exercise price of $.61. The option will not be exercised until the expiration date, if at all. If the spot rate on the expiration date is $.58, your net profit per unit is:

• A)-$.03.
• B)-$.02.
• C)-$.01.
• D)$.02.
• E)none of the above

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Definitions:

Zygmunt Bauman

A sociologist known for his analyses of modernity, postmodernity, and the societal impacts of globalization, consumerism, and ethics.

Eastern

Referring to the regions, cultures, or characteristics of the East, often in context of geography, like Asia, or in comparison to the Western world.

Western

Pertaining to or characteristic of the cultures, institutions, and thought originating from or associated with Europe and North America.

Anthony Giddens

A British sociologist who developed the theory of structuration and wrote extensively on contemporary society, modernity, and globalization.