The Premium on a Pound Put Option Is

question 21

Multiple Choice

The premium on a pound put option is $.04. The spot rate and the exercise price are $1.52. The spot rate at the time of this option expiration is expected to be $1.51. Speculators could profit by:​

• A)writing a put option.
• B)buying a put option.
• C)buying a call option
• D)writing a call option and buying a call option simultaneously.

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Definitions:

Late Adolescence

The final stage of adolescence, typically ages 18-21, characterized by increased independence, identity exploration, and the transition into adulthood.

Adult Status

The phase of life characterized by having obtained the social, legal, and developmental traits typically associated with adulthood, such as independence and responsibility.

Late 20s

Refers to the latter part of the decade in a person's life, typically the ages of 27 to 29.