You Are a Speculator Who Sells a Put Option on Canadian

question 7

Multiple Choice

You are a speculator who sells a put option on Canadian dollars for a premium of $.03 per unit, with an exercise price of $.86. The option will not be exercised until the expiration date, if at all. If the spot rate of the Canadian dollar is $.78 on the expiration date, your net profit per unit is:

• A)-$.08.
• B)-$.03.
• C)$.05.
• D)$.08.
• E)none of the above

---

Definitions:

Gender

The social and cultural roles, behaviors, activities, and attributes that a given society considers appropriate for men, women, and other gender identities.

Multitasking

The ability to perform multiple tasks simultaneously or switching back and forth from one thing to another.

Analytic Intelligence

One aspect of human intelligence that involves the ability to analyze, evaluate, judge, compare, and contrast information.

Intuitive

Referring to understanding or knowing something instinctively, without the need for conscious reasoning.