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.

---

Definitions:

Procreation

The biological process through which an individual produces offspring, contributing to the continuation of a species.

Good People

Individuals characterized by ethical qualities, moral goodness, and virtuous behaviors.

Happy

A state of well-being and contentment, often seen as an essential goal in human life.

Socrates

A classical Greek philosopher credited as one of the founders of Western philosophy, known for his dialectical method of inquiry, known as the Socratic method.