A Put Option on Yen Is Written with a Strike

question 35

Multiple Choice

A put option on yen is written with a strike price of ¥105.00/$. Which spot price maximizes your profit if you choose to exercise the option before maturity?

• A) ¥100/$
• B) ¥105/$
• C) ¥110/$
• D) ¥115/$

---

Definitions:

Infundibulum

A funnel-shaped structure; in the human body, it is part of organs such as the brain (connecting the pituitary gland to the hypothalamus) and the female reproductive system (the fallopian tubes).

Negative Feedback Mechanism

A regulatory process in biological systems where the output of a system inhibits or slows the processes leading to the output, ensuring stability.

Stimulus

Any external or internal factor that influences the activity of a living organism or any of its parts.

Calcitonin

A hormone produced by the thyroid gland that helps regulate calcium levels in the blood.