A Call Option on Euros Is Written with a Strike

question 67

Multiple Choice

A call option on euros is written with a strike price of $1.30/euro. Which spot price maximizes your profit if you choose to exercise the option before maturity?

• A) $1.20/euro
• B) $1.25/euro
• C) $1.30/euro
• D) $1.35/euro

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Definitions:

P Wave

A component of an electrocardiogram (ECG) representing the depolarization of the atria preceding a heartbeat.

Sinoatrial Node

The heart's natural pacemaker, located in the right atrium, responsible for initiating the heartbeat.

Wave of Depolarization

A rapid change in electrical charge across a cell membrane, leading to nerve impulse transmission or muscle contraction.

QRS Complex

A portion of an electrocardiogram (EKG) representing the depolarization of the heart's ventricles, preceding the ventricular contraction.